Cadence flirts with rich suitors

Private equity firms eye tech sector

Cadence Design Systems, a San Jose maker of the software used to design computer chips, is in talks with at least two buyout firms about a possible sale of the company, two people close to the matter said Sunday.

The San Jose company, which has a stock-market value of about $6.4 billion, has held talks with Kohlberg Kravis Roberts and the Blackstone Group, and other suitors may emerge, sources said. But they warned that a deal may not happen because of the complicated risks in the company’s business. Other private equity firms took a look at Cadence but passed.