Subject: Apache doesn't IPO, but is bought as DeepChip readers predicted!

> Have you seen those numbers in the APAD S-1?   Revenue is $44 million.
>
>            127 R&D engineers costing $11.5 million
>            109 Sales & Marketing
>             21 General & Admin
>
> If a Big Four co acquires APAD, the redundant Sales & Marketing and G&A
> are let go leaving $44 million revenue that costs $11.5 million.  That's
> a tidy $32.5 million annuity that an APAD aquisition represents.
>
> I'd be surprised if Apache wasn't acquired by DAC.
>
>     - from http://www.deepchip.com/items/0492-03.html


From: John Cooley <jcooley=user domain=zeroskew not calm>

With a few strange twists, exactly as the DeepChip predicted 2 weeks before
the San Diego DAC, Apache didn't IPO but instead was acquired!

The "twists" were:

    - Apache went to Ansys, a non-EDA company.  (Nobody saw that coming!)
      Rumors had either Synopsys or Mentor acquiring Apache; with most
      leaning towards Synopsys because Wally was too busy keeping the
      Carl Icahn board members happy.

    - Apache went to Ansys for an effective $281 million ($310 million
      minus the $29 million Apache had on the balance sheet when bought).
      Since $29 million is roughly 1/2 of 2011 revenue, that means the
      whole of 2011 was going to be roughly $60 million.

                    $281 million / $60 million = 4.7 multiple

      It was felt that Apache would only sell for a 6X or higher multiple.
      It should have sold for $390 million; for an effective $360 million.

    - Apache went to Ansys, a non-EDA company!  Ansys does PHYSICAL and
      MECHANICAL simulations; that's stuff like fluid dynamics and
      structural mechanics!  What's Apache's doing lost way out there???

Since Apache is to be a wholly-owned subsidiary of Ansys, Andrew Yang might
still be running Apache as an EDA company.  If they still advertise in EDA
pubs and keep showing up at DAC and DesignCon, it might still be an EDA
company.  If Apache disappears into whatever worlds, conferences, and pubs
that Ansys normally dwells in, then say BYE BYE to Apache....

    - John Cooley
      DeepChip.com                               Holliston, MA