Cadence Design Systems, Inc. (NasdaqGS:CDNS) is looking for acquisitions. Anirudh Devgan, President and Chief Executive Officer said, "So our first focus is in our core business. So we are leading in our core business.

Our first focus is on organic development, okay? That's what we like. We always say that's the best way forward.

Now, along with that, we have done, like you mentioned, some opportunistic M&A, which is usually, I would like to say, is the tuck-in M&A in the past. And that adds to our portfolio. It helped us in system analysis.

We also did it in IP because I'm very optimistic about IP growth this year. And we talked about our new partnership with Intel foundry in first quarter. Also, we acquired Rambus IP assets, which are HBM and HBM is, of course, a critical technology in AI and we are seeing a lot of growth in HBM this year.

Now it's -- we have booked that business, the deliveries will happen towards the second half of the year, as John was saying earlier so that's thing. Now in terms of BETA, it made sense because it is a very good technology. It's the right size for us, and we are focused on finishing that acquisition and also integrating that, that will take some time.

So that's our primary focus in terms of M&A". John Wall, Senior Vice President and Chief Financial Officer said, "I think one of the biggest challenges with something like that is you know, we do small tuck-in M&A, but I don't want to go over Lee Simpson -- the answer Anirudh gave to Lee Simpson but organic is delicious here. At Cadence, we focus on innovation and growing with organically driven products and then with small tuck-in M&A. But to the extent that we do some larger M&A and of course, we have BETA CAE, which apparently is the gold standard in structural simulation.

So that's a big acquisition for us. But now I think the size of that probably still qualifies as a small tuck-in. But when you do something like that, that those M&A transactions typically are headwinds to that incremental margin calculation in the short term, they will be beneficial in the long term.

But in the short term, M&A can be dilutive pretty much in the first year and then becomes accretive later. When we look at our incremental margin. That's a headwind.

But we try to overcome that headwind because normally, all we do with these small tuck-in M&As".