I am a former employee of ARC and a long-time participant and observer in the semiconductor IP business.

ARC recently lost most of it's processor IP developers and sales team who know how to sell processors. When prospective customers ask tough questions about ARC processors such as the development roadmap or whether certain software will be ported as a deal contingency Virage Logic will have no plausible response and the processor IP licensing deals will go to competitors. I expect few to no deals for ARC processors after the acquisition. That means that the only substantial value that Virage Logic is acquiring is ARC's existing long-term royalty obligations from past customers. Given the cost of ongoing customer support and the cost of distraction of executives from Virage Logic's main business I feel that Virage Logic is overpaying for ARC and will be hurt by the acquisition in the long term.

I see more similarities to the disastrous MIPS acquisition of ChipIdea than to the modestly successful ARM acquisition of Artisan.