Cadence Design Systems (NASDAQ:CDNS) is to acquire a smaller chip design shop, the privately held Tensilica. The purchase price is roughly $380 million in cash.

Tensilica specializes in components known as dataplane processing units, which, when combined with Cadence's existing technology, "will deliver more optimized IP solutions for mobile wireless, network infrastructure, auto infotainment, and home applications," according to the Cadence press release announcing the move.

CEO Lip-Bu Tan was quoted as saying that "with Tensilica, we will be able to provide designers with a more complete SoC solution that will speed the development of innovative and differentiated products, while reducing time to market."