Reborn in 2010, the AI in my mind is too powerful.
Chapter 105 Signing of the Tripartite Contract
The Shijingshan Industrial Park is just beginning to develop, and there are many vacant office buildings at very low prices.
At Chen Yiran's instruction, Wanguoyuan rented an entire floor here as its office.
After officially moving in, Lin Xiao had many lifestyle modifications made, and then took the lead in living directly in the office.
After all, the office space is 70 square meters per person, and it's free, with all utilities (water, electricity, and internet) included. It's much better than the nearby talent apartments.
After a recent project was successfully launched, they finally had some free time. The group usually spends their time at the company playing video games together.
They only felt a sense of crisis after Kai Deng's men arrived.
Lin Xiao specially set up a conference room for them. The network cables on the four machines were disconnected and the USB ports were sealed before Kai Deng's people were allowed to start testing.
Everything was done to keep Bai Lizhi within the control of Wanguoyuan. Test files went in, and results went out, without being transferred to disk, online, or leaked in between.
He even went to the park and borrowed a few security guards to bolster his courage.
After all, Wanguoyuan only has eight employees, while Kaideng has more than twenty. If a fight breaks out, Lin Xiao isn't confident he can protect both the hardware and software; he's been a bit on edge these past two days.
Fortunately, the people in Kai Deng weren't that despicable. They worked overtime for five days and came to some very exaggerated conclusions.
In terms of routing completion rate, with the same PCB file and a four-hour time limit, Bai Lizhi achieved 98%, while Kaiden's Allegro achieved 92% in the same timeframe.
The number of DRC violations decreased by 60% to 70%, and the overall board routing speed was nearly three to five times faster with GPU parallel acceleration.
The outputs of signal integrity parameters and impedance matching are also superior to those of Kaiden Allegro.
The Gerber files output by WhiteLychee have almost no defects in the manufacturability checks during factory simulations. This is due to WhiteLychee's unique automatic correction function, which KaiDeng's Allegro cannot match at all.
To further push the performance of the White Lychee server, KaiDeng began extreme stress testing, using a 30-layer server motherboard with over 20,000 points. The White Lychee server actually completed the test in one go.
After talking with the technical director, Chen Liwu was extremely excited. He knew Chen Yiran was technically skilled, but he hadn't expected her to be this skilled.
He had previously thought that Chen Yiran's offer was just to leave room for negotiation later, but now it seems that it was actually a fairly reasonable offer, with some inflation, but not much.
After gathering all the information, Chen Liwu had a bold idea: the money had to be given, and a lot of it had to be given, until Kai Deng's cash flow was completely drained.
He immediately called Ted, who was already waiting in Beijing, and told him that the contract could be signed at any time.
--------------------
Chen Yiran eventually bought two apartments, one on the fifteenth floor of Building 3, which was the second-to-top floor.
The other unit is also in Building 3, and it's a 12-story unit.
The two units together cost nearly 150 million, even with a discount on the 15th-floor unit.
When Mr. and Mrs. Chen paid the deposit, they were still a little heartbroken.
Chen Yiran didn't say anything, signed the document, and rushed to the company.
It's no use saying anything now. Once the agreement with Wanguoyuan is signed and Kaideng transfers the money, I'll just show it to my parents, and they probably won't feel bad about it anymore.
On the way, Chen Yiran first went to the hotel to meet up with Ted and his group.
After meeting him, Chen Yiran first asked him the question he was most curious about: "Have the people at Kai Deng lost their minds?"
Ted said helplessly, "They're offering you money, and you're talking about them like that."
"Did you guys read their agreement carefully? Are you sure there aren't any traps? This cash figure is outrageous. I always thought it would be paid in shares, or through a bet, or with deferred payment."
"We used the agreement we drafted, and they had no objections after reviewing it, so you can rest assured from a legal standpoint. You won't lose out anyway. As for why they're willing to pay so much cash, I'm a little confused about that too."
Chen Yiran picked up the agreement and quickly read it through, then asked Jasmine: What do you think? Is there a problem?
The contract is too complicated. I can only confirm that the US portion is fine because I'm not very familiar with Chinese law.
Chen Yiran turned to Ted and asked, "Is your Chinese partner reliable? Will there be any problems?"
"Don't worry, if it were drafted by the other party, I would hesitate. But we're using the contract we drafted, so I'm confident there won't be any problems."
"How strange, how strange!"
The two discussed it for a long time, but still couldn't figure out Kai Deng's purpose. They could only take it one step at a time. At least for now, whatever Kai Deng's conspiracy was, it wasn't aimed at Chen Yiran.
In the offices of Wanguoyuan, the two sides lined up, but the atmosphere was surprisingly good.
Kaiden's legal team was almost completely submissive and did not raise any objections. The two parties then proceeded to determine the transaction amount.
Chen Liwu pointed to the contract and said, "I'm sorry, Mr. Chen, we at Kaiden have done our best. Our cash reserves are only around one billion, so 9 million US dollars is the limit."
Our entire EDA business line was valued at $3 million. We will have to repay the remaining $8 million over the next three years.
However, our settlement will be very quick; we can make payment on the first settlement date, without the usual one-month timeframe. However, we have some new requirements that require your agreement, Mr. Chen.
After Chen Liwu finished speaking, Kai Deng's legal department handed over several contracts.
Chen Yiran and Ted exchanged a glance, realizing that this was why Kai Deng was willing to spend so much money.
There are three copies of the contract.
The first agreement is a suspension agreement. Within three years, Chen Yiran, Wanguoyuan, and FlowEDA are prohibited from buying even one share of Kaiden. Not only are they prohibited from buying it themselves, but they are also prohibited from having someone else buy it on their behalf, and they are even prohibited from making statements about wanting to buy it.
The second document concerns an information firewall, which is even more outrageous. In fact, US securities law contains relevant provisions. As a party to the transaction, after Bai Lizhi was sold to Kaiden, Chen Yiran essentially possessed Kaiden's non-public information, and the law stipulates that he cannot disclose it arbitrarily.
However, Kai Deng still had to sign an additional agreement to ensure that Chen Yiran would not leak the secret.
Then came the third document. After reading it, Chen Yiran finally understood Kai Deng's intention.
This is an accelerated repayment agreement for a change of control. If Kaden is privatized or changes control, the remaining 8 million installment will be paid in full immediately.
【The people at Kaiden are really something. Although this seems to protect our rights, it actually blocks our path to interfere with Kaiden's privatization by using unfinished contracts.】
They've spent all their cash flow in one go, resulting in incredibly ugly fourth-quarter data. Plus, no matter how prestigious your reputation is, this two-billion-dollar deal, which wipes out current and even future three years' worth of cash flow, will undoubtedly be considered foolish by Wall Street.
Then they can buy back the company stock at a low price and eventually privatize it.
Ted whispered in Chen Yiran's ear, "These are three very clear and simple terms. If you don't have any other ideas, just sign them."
Chen Yiran didn't care how Kaiden profited from investors; it was simply a matter of privatizing at a low price and then relisting Bai Lizhi at a high price after it demonstrated its strength. It had nothing to do with him, since he was going to pocket two billion US dollars anyway.
Without any dispute, the two parties signed the contract in just over ten minutes.
Both parties agreed that December 23 would be the date for the transaction announcement and settlement.
Chen Yiran, as the actual controller of Wanguoyuan, signed the agreement with FlowEDA.
The final tripartite agreement.
Wanguoyuan: Permanent exclusive authorization to produce white lychees worldwide, excluding mainland China.
The company secured $900 million in cash and $800 million over the next three years, along with two small PCB business units in China and exclusive distribution rights for all FlowEDA EDA software in China.
Kaiden: $900 million in cash, plus $800 million over the next three years. This includes the overall EDA business line and two small PCB business groups in China.
We have obtained a permanent exclusive license for white lychee worldwide, excluding mainland China.
FlowEDA: Exclusive distributorship in China for its EDA software.
Gain access to KaiDeng's overall EDA business line.
Normally, after such a big transaction, there should be a banquet.
However, the people on Kaiden's side were in a great hurry; they wanted to get everything sorted out before Christmas.
So, I left in a hurry.
Chen Yiran didn't try to stop him, because although he had time, Ted's time was still very precious.
Ted said with a helpless expression, "Seriously? You finished such a big project today, and you're not even going to treat me to a meal?"
"Time is of the essence. Aren't the people at Intel still stalling? Get it done quickly. It's not expensive to begin with, and I can offer a discount. Ideally, we could announce it together on the 23rd."
"Are you in such a hurry? Do you want to go back to America to gloat?"
Chen Yiran said ominously, "I definitely have to go see the joke. Doesn't Icahn like to talk big on the news, acting like he's the best in the world? I need to hurry back and give him a good dressing down!"
Ted eventually went to work, while Chen Yiran took the eight "Big Brothers" from Wanguoyuan to celebrate.
Let's have a good time first, then Chen Yiran has a difficult task ahead.
We need to plan carefully how to spend this $900 million.
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