Magma Design Automation, a provider of chip design solutions, has acquired Knights Technology, a provider of yield management and failure analysis software solutions to the semiconductor industry, from FEI Company. Knights Technology products, employees and management team will be part of Magma's Fab Analysis Business Unit. Magma plans to bring design intent into Knights' industry-leading CAD navigation tools, enabling product engineers to analyze manufactured ICs for both systematic and parametric defects. Magma also intends to leverage Knight's yield management presence in the fab and to partner with semiconductor manufacturers to calibrate Magma's process models for improved IC design implementation. Terms of the transaction were not announced, but Magma expects sales of the Knights Technology products will contribute approximately $1.5 million to Magma's total revenue for the remainder of the company's fiscal year after purchase accounting adjustments.