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EXHIBIT 99.1
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CONTACT INFORMATION
NORTH AMERICA: EUROPE/MIDDLE EAST: ASIA PACIFIC:
Ed Canty Sarah Miller Peter van der Sluijs Junko Kaneko
508.303.5291 508.303.5254 +44 1442 879222 03(3364)5531
[email protected] [email protected] [email protected] [email protected]
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INNOVEDA AND PADS SOFTWARE COMPLETE MERGER
INNOVEDA NOW PROVIDES A COMPREHENSIVE PCB DESIGN FLOW
MARLBORO, MASS. - SEPTEMBER 25, 2000 - Innoveda, Inc. (Nasdaq:INOV), a leading
provider of software and services for the design of advanced electronic
products, today announced it has successfully completed its merger with PADS
Software, Inc. Innoveda now provides manufacturers of electronic products a
comprehensive software solution for printed circuit board (PCB) and advanced
packaging design, along with its other environments for system-level and
electromechanical design.
The merger received approval by PADS' shareholders during the past
month. This followed Innoveda's merger registration statement, which
was declared effective by the Securities and Exchange Commission (SEC)
on August 11, 2000, and unanimous approval by the Innoveda board of
directors on May 31, 2000. PADS is located in Marlboro and was a
privately held company.
In the transaction, a total of approximately 6.5 million shares of
Innoveda stock and approximately U.S. $2 million were exchanged for all PADS
outstanding stock. In addition, Innoveda assumed all outstanding options to
purchase PADS stock and will be paying down approximately $7.4 million of PADS'
debt. As a result of the merger, Innoveda expects that its revenue for the
fourth quarter of this year will increase by approximately $7.5 million and
earnings before interest, taxes and amortization (EBITA) will increase by $1.1
million to $1.5 million.
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VITAL TECHNOLOGY
William J. (Will) Herman, president and CEO of Innoveda said, "We are
pleased the merger has closed so quickly. Innoveda is committed to helping its
customers overcome board design complexity and deliver differentiated products
to market. Our product portfolio now features vital routing technology as well
as a complete suite of signal integrity tools and the ability to perform unique
manufacturing optimizations. We believe that by being the first to deliver
next-generation technology in PCB design, verification and analysis, we can help
our customers meet these challenges in record time. Innoveda's merger with PADS
is a giant step towards this goal."
Herman will remain president and CEO of the merged company. Innoveda
will continue to be managed by its current team with the addition of PADS
executives taking key leadership roles.
LEADERSHIP POSITION
Ken Tepper, president and CEO of PADS Software, said, "A major benefit
for the PADS' installed base of 62,000 users worldwide is that the combined
company has a leadership position in high-speed design and offers the breadth of
tools and services needed to meet the electrical design requirements for both
high-speed and mainstream users.
"The two companies have very little product overlap and have shared a
common VAR (Value-Added Reseller) channel for many years. The sales channels are
reacting positively to this merger as they have been conducting business with
both companies for a long time and view the merger as an increase in operational
efficiency," he added.
COMPREHENSIVE ENVIRONMENT
As a result of the merger, Innoveda now provides a comprehensive
front-to-back environment for printed circuit board (PCB) and advanced packaging
design from a single company. The combined solution features leading front-end
tools from Innoveda and leading back-end design tools from PADS.
The merger enables Innoveda to target mainstream and high-speed PCB
designers with a solution that includes a complete capture-to-manufacturing
flow. The solution
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comprises: the PowerPCB-TM- design environment, which includes the
PowerLogic-TM- schematic capture tool and the BlazeRouter-TM- autorouter; the
PowerBGA-TM- tool for physical design at the IC package level; the HyperLynx-TM-
signal integrity analysis tool; aNd the CAM350 tool for manufacturability
analysis and fabrication. It is combined with Innoveda's popular
ViewDraw-Registered Trademark- schematic capture tool, the Design Exchange-TM-
family of Internet-based communication tools and the market-leading XTK-TM-
signal integrity analysis tool for a complete front-to-back PCB design flow.
Herman added, "By gaining access to the industry's latest routing
technology, we now are positioned to rapidly deliver next-generation software
that addresses complex signal integrity issues during routing."
The Innoveda front-end tools also will continue to support other
popular logical and physical design tools, ensuring that customers will have
maximum flexibility in developing their design flows.
Earlier this year, Viewlogic Systems, Inc. and Summit Design, Inc.
completed their merger to become Innoveda. The company will remain headquartered
in Marlboro, Mass.
ABOUT INNOVEDA
Innoveda, Inc. (Nasdaq:INOV) is a leading provider of innovative
software and services that help engineers visualize, design and build advanced
electronic systems for companies participating in the telecommunications,
transportation, computers and consumer electronics markets. The company enjoys a
rich heritage of technical innovation from the merger of Viewlogic Systems, Inc.
and Summit Design, Inc. that formed Innoveda, and the subsequent merger of
Innoveda and PADS Software, Inc. These unions form the foundation of Innoveda's
comprehensive electronic product solutions for system level design, design
capture, board design and electromechanical design. Headquartered in Marlboro,
Mass., Innoveda has offices worldwide. Additional information can be found at:
www.innoveda.com.
FORWARD-LOOKING STATEMENTS
This press release includes forward-looking statements that are subject
to a number of risks and uncertainties. All statements, other than statements of
historical
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facts included in this press release, regarding Innoveda's financial projections
for any period (including, without limitation, revenue and EBITA projections for
the fourth quarter of this year), strategy, future operations, financial
position, prospects, plans, goals and objectives of management are
forward-looking statements. When used in this press release, the words "will",
"believe", "anticipate", "intend", "estimate", "expect", "project", "plan" and
similar expressions are intended to identify forward-looking statements,
although not all forward-looking statements contain these identifying words. We
cannot guarantee future results, levels of activity, performance or
achievements, and you should not place undue reliance on our forward-looking
statements. Our forward-looking statements do not reflect the potential impact
of any future transactions or strategic alliances. Our actual results could
differ materially from those anticipated in these forward-looking statements as
a result of various factors, including the ability of Innoveda to successfully
integrate its business combinations, the failure of Innoveda's quarterly results
to meet market expectations, the impact of financial charges related to business
combinations, the intense competition Innoveda faces, Innoveda's ability to
develop new products, and the other risks described in the registration
statement on Form S-4 (File No. 333-42814) filed on August 2, 2000, as amended,
in Innoveda's most recent quarterly report on Form 10-Q and annual report on
Form 10-K and other public filings made by Innoveda with the Securities and
Exchange Commission, which factors are incorporated herein by reference.
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Editor's note: Innoveda, BlazeRouter, Design Exchange, HyperLynx, PowerBGA,
PowerLogic, PowerPCB and XTK are trademarks and ViewDraw is a registered
trademark of Innoveda, Inc.
