Will the Cadence deal happen? The speculation mounts for both sides.

It has been reported that the software maker was in talks with the private equity firms Blackstone Group and Kohlberg Kravis Roberts. However, Blackstone won't pick up the phone, and Cadence and KKR are declining to comment.

While some experts believe that software firms who aren't overvalued (like Cadence) make good and likely targets, other believe Cadence may not want to sell given its steady stream of cash.

A multibillion-dollar buyout of Cadence Design Systems could bring its private-equity investors substantial profits as they siphon off the steady stream of "maintenance" revenue many software companies receive from their customers.

But analysts and investment bankers were split Monday on whether such a deal would take place after news reports claimed the maker of software used to design semiconductors was in talks with buyout firms Blackstone Group and Kohlberg Kravis Roberts.

(Continue reading this story on MercuryNews)

Next article » Yahoo In Play?