Arteris announced that it has closed its acquisition of Cycuity on January 14 2026. The $45 million transaction consists of $13.5 million in cash, $19.5 million in Arteris common stock, and an earn‑out of up to $12 million tied to Cycuity’s 2026 bookings.
The deal brings Cycuity’s hardware‑security assurance technology into Arteris’s core network‑on‑chip interconnect IP. Together, the combined platform can secure on‑chip data movement without sacrificing performance, addressing a 15‑fold rise in hardware CVEs over the past five years and the growing demand for secure silicon in AI and chiplet architectures.
Arteris’s Q3 2025 revenue of $17.4 million, an 18% year‑over‑year increase, demonstrates the company’s ability to grow in a competitive IP market. The acquisition is expected to open new revenue streams and improve margins by adding high‑margin security services to a portfolio that already serves major EDA and silicon design customers.
CEO K. Charles Janac said the acquisition marks an inflection point for hardware security, noting that the volume of data traversing SoCs and chiplets is expanding faster than the industry’s ability to secure it. Cycuity CEO Andreas Kuehlmann added that the complementary technologies will accelerate secure microelectronics design and help customers meet regulatory and customer security requirements.
Investors have responded cautiously to the announcement, reflecting the market’s wariness of large capital outlays in a sector that is still maturing. Management’s confidence in the strategic fit and the expected synergies suggests a long‑term benefit for shareholders, even as the company continues to navigate competitive pressures from established IP providers.
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