In 1989, P-CAD was acquired by Cadam, which was a subsidiary of Lockheed, but was in the process of being sold to IBM. Key marketing/sales managers included Kirk Shorte, Steve Mayer, Bruce Fihe, Kathy Eggiman, Elizabeth Dessuge, Ken Lowe, Susan Scal, Donna Licot, Shahriar Emami, and John Roth, who as Director of Sales, was instrumental in bringing the first $5 million of sales into the company. Key engineering managers included Bob Dean, Bill Newhard, Howard Schutzman, Alvin Hung, Felix Ruslim, Ron Rinaldi and Mark Houde.

Some of the key later additions to the P-CAD team who were instrumental in building up the company include former IBM and Xerox executive Jim Dick, former Apollo Computer VP, Mike Lack, former Apollo Computer Western Regional Sales Manager, Arthur Clark, and EDA industry veteran Ellis Smith, who managed P-CAD's Asia business. P-CAD also signed up IBM as a distribution partner, especially for Japan. Other customers included most of the top electronic companies in the U.S., Europe and Japan. Its single biggest customer was Texas Instruments. P-CAD's flagship products included schematic capture, logic simulation and PCB layout. At that time, Cadence was just being formed with the merger of ECAD and SGA, and Synopsys was being founded as a new start up.

At that time, P-CAD was the most prolific EDA company as measured by its user base, easily surpassing established CAD companies such as Autotrol, Calma, Intergraph, Daisy, Mentor, Cadnetix, CAE Systems, ECAD, SDA Systems, etc. P-CAD went on to become the company with the biggest installed base of users of Electronic Design Automation (EDA), with over 10,000 users by 1988. The board of directors included John Mumford (Crosspoint), Dick Kramlich (NEA) and Sy Kaufman (Robertson, et al.). The startup originally raised United States dollar 500,000 from CrossPoint Venture Partners, and US$3,000,000 in a second round from New Enterprise Associates and Robertson, Coleman and Stephens. The vision of the company was to disrupt the existing hegemony of $250,000 CAD systems based on mainframe computers and custom workstations, and make electronic CAD available to the masses at a cost under $10,000. P-CAD was a play on personal computers, which were just becoming popular, following the launch of the IBM PC. Also, part of the founding team were Gregory Houston, VP Marketing, a former Calma executive, and Chi-Song Horng, Director of software engineering (later promoted as a Vice President), a former AMI software engineering manager. (AMI), a custom semiconductor company based in Santa Clara, California.

Both were former executives of American Microsystems, Inc. P-CAD was the brand name created by Personal CAD Systems, Inc., a company founded in 1982 in Los Gatos, California, by Richard Nedbal (CEO) and Roy Prasad (VP of Engineering).

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