ShareThis Page
Business

California firm buys local start-up

| Wednesday, April 7, 2004

Another Pittsburgh-area technology start-up has been acquired by a company from California.

Neolinear Inc., an O'Hara-based maker of design software for making integrated analog and digital semiconductor chips, is being purchased by San Jose, Calif.-based Cadence Design Systems Inc. Terms of the deal were not disclosed.

Neolinear employs about 75 people, between 50 and 55 in Pittsburgh, said Chief Executive Thomas Beckley, who said that all but one employee will be retained and local offices in the Regional Industrial Development Corp. business park maintained.

Late last year, local start-ups Spinnaker Networks Inc., PrintCafe Software Inc. and Nomos Corp. were bought by California concerns. In January, FreeMarkets Inc. said it will be acquired by Sunnyvale, Calif.-based Ariba Inc.

Neolinear Chairman Ron Rohrer will become Cadence's director of applied research and Beckley will stay on as a circuit designer. Cadence Chief Executive Ray Bingham led a delegation of 10 company officials visiting Pittsburgh Tuesday to meet Neolinear employees.

"Cadence is a big company, with more than $1.3 billion in revenues. For the CEO to pay a visit shows how important Neolinear is to Cadence's plans for the future," Beckley said.

Beckley declined to reveal Neolinear's revenues, but said it has more than 30 customers.

Cadence was the lead investor in an $8 million funding round for Neolinear in 2000 and has been a strategic re-seller of Neolinear's products for three years.

Cadence is a member of the Pittsburgh Digital Greenhouse, a state-sponsored effort to make Pittsburgh a center of the advanced semiconductor design. The Greenhouse provided Neolinear a $273,000 research grant in 2001, helping it to reach supply deals with chipmakers Oki and Sony.

Neolinear raised a total of nearly $17 million in venture capital and received a $3.8 million grant from the Defense Advanced Research Projects Agency to fund its research.

TribLIVE commenting policy

You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.

We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.

While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.

We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers

We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.

We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.

We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.

We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.

click me