ARC International has acquired Tenison Technology EDA Limited, a privately held company that is a provider of software tools used to help develop system-on-chip (SoC) designs. The consideration will be £1 million (approx. $ 1.97 million) in cash. The acquisition includes fifteen key members of Tenison's engineering team, patents, and products such as the VTOC software suite and IP eXchange technology. The acquired products will provide models of ARC's configurable processors and multimedia subsystems. Moreover, they will allow customers to simulate virtually all logic on any ARC-Based chip, including those using non-ARC technologies such as customer-developed intellectual property (IP) and IP from other suppliers like ARM Holdings. The acquisition may have a cost impact of up to £350,000 on ARC's financial year 2007 operations. For the year ended December 31, 2006 ARC reported a revenue of £13.4 million and a net loss of £1.1 million. Tenison reported for 2006 a net loss of £1.4 million. 

Additionally, ARC announced the establishment of an engineering center in Cambridge, England, and the appointment of Dr. David Greaves to ARC's Office of the CTO (Chief Technology Officer). Dr. Greaves is a faculty member and lecturer at the University of Cambridge Computer Laboratory, a founder of Virata, and the founder and chief scientist of Tenison; he is a technology advisor to companies such as AT&T and BT (British Telecommunications).