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Acquisitions
 9 Months Ended
Sep. 30, 2026
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
Acquisitions Acquisitions
Optical Proximity Correction Suite of Tools
On March 4, 2025, the Company consummated an asset purchase agreement with Cadence Design Systems, Inc. (“Cadence”), pursuant to which, among other things, Silvaco agreed to acquire certain assets and assume certain liabilities comprising Cadence’s Process Proximity Compensation product line, an optical proximity correction suite of tools (the “OPC Business”), in exchange for $11.5 million in cash.
The Company expects that the addition of the OPC suite of tools and expert team, which are complementary to Silvaco’s EDA and TCAD suite, will enhance Silvaco’s ability to offer advanced computational lithography solutions that address the increasing complexity of semiconductor manufacturing at advanced nodes.
The acquisition was accounted for as a business combination, and Silvaco recorded the assets acquired and liabilities assumed based on their estimated fair values at the date of the acquisition. Silvaco recorded the excess of consideration transferred over the aggregate fair values of acquired assets and assumed liabilities as goodwill. The goodwill recorded was primarily attributable to synergies expected to arise after the acquisition and the value of the acquired workforce, and is expected to be deductible for U.S. income tax purposes.
The following is a summary of the assets acquired and liabilities assumed in the OPC Business acquisition.
Asset TypeUseful Life (Years)Fair Value
(in thousands)
Contract asset$615 
Deferred tax asset164 
Developed Technology71,000 
Customer Relationships64,990 
Goodwill5,147 
Deferred revenue(416)
Net assets acquired and liabilities assumed $11,500 
The fair value of developed technology was determined using a discounted cash flow model through application of the income approach, using the relief-from-royalty method, which assumed a market-based royalty rate applied to projected revenue. The fair value of customer relationships was determined using a discounted cash flow model under the income approach, specifically the multi-period excess earnings method, which discounts future cash flows attributable to existing customers, net of operating expenses and contributory asset charges.
During the three and nine months ended September 30, 2025, the Company incurred $0 and $0.6 million of acquisition-related expenses, respectively, in connection with the acquisition of the OPC Business, which were recognized in general and administrative expense on the condensed consolidated statements of operations. The Company did not incur any acquisition-related expenses during the three and nine months ended September 30, 2026.
Tech-X Corporation
On April 29, 2025, the Company consummated a stock purchase agreement with the shareholders of Tech-X Corporation (“Tech-X”), pursuant to which Silvaco agreed to acquire all of the outstanding shares of Tech-X for an aggregate purchase price of $8.2 million. The purchase consideration consisted of (i) $4.1 million in cash, (ii) 457,666 shares of the Company’s common stock with a fair value of $2.4 million on the closing date, and (iii) contingent consideration, with a maximum payout of $2.0 million, and with an estimated fair value of $1.7 million, payable upon the achievement of specified technical milestones through December 2026. In February 2026, the Company and one of the selling shareholders of Tech-X agreed to amend the form of payment of the contingent consideration and post-closing net working capital adjustments to be payable in shares of the Company’s common stock. As a result of the achievement of the first milestone and to settle the net working capital adjustments, the Company issued 167,281 shares of its common stock in February 2026 to a shareholder of Tech-X and recorded the issuance of shares at its fair value of $0.7 million in additional paid in capital. The Company paid the remainder of the earnout consideration attributable to the achievement of the first milestone to the other selling shareholders in cash of $43 thousand. The Company and the Tech-X selling shareholder representative also agreed to extend the date through which contingent consideration can be earned to July 2027. During the nine months ended September 30, 2026, the second earn-out milestone was achieved. As a result, the Company became obligated to pay cash of $0.1 million and issue 69,062 shares of common stock with a fair value of $0.7 million, which was recorded in additional paid in capital. During the three months ended September 30, 2026, the Company paid cash of $0.1 million and issued 69,062 shares of common stock to settle the second earn-out milestone achievement.
The fair value of the contingent consideration was determined using a discounted cash flow model utilizing a probability weighted analysis, and is re-valued period to period with any changes recorded to interest expense and other income (expense), net in the consolidated statements of operations. Refer to Note 14, Fair Value of Financial Instruments for additional information.
The Company believes that integrating Tech-X’s advanced multi-physics simulation tools with Silvaco’s Victory TCAD platform will enhance customers’ ability to develop more accurate digital twin models for photonics, semiconductor devices and wafer-scale plasma etching.
The acquisition was accounted for as a business combination. The Company recognized the assets acquired and liabilities assumed at their estimated fair values as of the acquisition date. The excess of the total consideration transferred over the fair value of the net identifiable assets acquired was recorded as goodwill. The goodwill is primarily attributable to expected synergies from the integration of Tech-X’s technologies with the Company’s existing platform and the value of the acquired workforce. The goodwill is not deductible for U.S. income tax purposes.
The following is a summary of the fair value of assets acquired and liabilities assumed in the Tech-X acquisition.
Asset TypeUseful Life (Years)Fair Value
(in thousands)
Cash$851 
Accounts receivable749 
Prepaid expenses and other current assets75 
Property and equipment33 
Customer relationships61,730 
Developed technology71,280 
Trade name2130 
Goodwill4,385 
Accounts payable(104)
Accrued expenses and other current liabilities(303)
Deferred tax liability(572)
Deferred revenue(80)
Net assets acquired and liabilities assumed $8,174 
The fair value of customer relationships was determined using a discounted cash flow model under the income approach, specifically the multi-period excess earnings method, which discounts future cash flows attributable to existing customers, net of operating expenses and contributory asset charges. The fair value of the developed technology and trade name intangibles were determined using a discounted cash flow model under the income
approach, specifically the relief-from-royalty method, which assumes a market-based royalty rate applied to projected revenues.
During the three and nine months ended September 30, 2025, the Company incurred $0 and $0.8 million of acquisition-related expenses in connection with the acquisition of Tech-X, which were recognized in general and administrative expense on the condensed consolidated statements of operations. The Company did not incur acquisition-related expenses during the three and nine months ended September 30, 2026.
Mixel Group, Inc.
On August 1, 2025, the Company consummated a stock purchase agreement with Mixel Group, Inc. (“Mixel”) and the shareholders of Mixel, pursuant to which Silvaco agreed to acquire all of the outstanding shares of Mixel for an aggregate purchase price of $22.5 million. The purchase consideration consisted of (i) $19.7 million in cash and (ii) 643,617 shares of the Company’s common stock with a fair value of $2.8 million on the closing date.
The Company believes that Mixel’s low-power connectivity silicon IP solutions complements Silvaco’s offerings and will position the Company for higher growth in low-power, high-performance connectivity solutions.
The acquisition was accounted for as a business combination. The Company recognized the assets acquired and liabilities assumed at their estimated fair values as of the acquisition date. The excess of the total consideration transferred over the fair value of the net identifiable assets acquired was recorded as goodwill. The goodwill is primarily attributable to synergies expected to arise after the acquisition and the value of the acquired workforce. The goodwill is not deductible for U.S. income tax purposes.
The following is a summary of the fair value of assets acquired and liabilities assumed in the Mixel acquisition.
Asset TypeWeighted Average Amortization Period (Years)Fair Value
(in thousands)
Cash$1,040 
Accounts receivable1,736 
Contract assets, net45 
Prepaid expenses and other current assets392 
Property and equipment486 
Customer relationships77,400 
Developed technology72,700 
Trade name125,500 
Operating lease right-of-use assets, net881 
Other assets4 
Goodwill11,512 
Accounts payable(842)
Accrued expenses and other current liabilities(1,609)
Operating lease liabilities, current(269)
Deferred revenue, current(2,653)
Deferred tax liability(3,209)
Operating lease liabilities, non-current(612)
Net assets acquired and liabilities assumed$22,502 
The fair value of customer relationships was determined using a discounted cash flow model under the income approach, specifically the multi-period excess earnings method, which discounts future cash flows attributable to existing customers, net of operating expenses and contributory asset charges. The fair value of developed technology and tradename was determined using a discounted cash flow model under the income approach, specifically the relief-from-royalty method, which assumes a market-based royalty rate applied to projected revenues.
During the three and nine months ended September 30, 2025, the Company incurred $1.4 million and $2.0 million in acquisition-related expenses, respectively, in connection with the acquisition of Mixel, recognized in general and
administrative expense on the condensed consolidated statements of operations. The Company did not incur acquisition-related expenses during the three and nine months ended September 30, 2026.