Siemens to acquire Mentor Graphics
On November 14, 2016, Siemens and Mentor Graphics signed an agreement to acquire Mentor from Siemens for $ 37.25 per share in cash. This equals US $ 4.5 billion. The offer price corresponds to a premium of 21 percent against the closing price of November 11, 2016, the last trading day prior to the announcement.
The Mentor Board of Directors supports Siemens' takeover offer and recommends that shareholders approve and accept the agreement. Elliott Management, a shareholder of Mentor, is committed to supporting the transaction.
The takeover extends the Siemens digital enterprise portfolio by providing Mentor established solutions for the design of integrated circuits (IC) and system design, simulation and manufacturing solutions. The combination of Siemens and Mentor enables development tools for mechanics, thermal, electrical / electronics and embedded software.
"Siemens takes over Mentor as part of the Vision 2020 concept and is hereby the benchmark for the new industrial age. Mentor is a perfect fit to expand our position in digital leadership and set the pace in the industry," said Joe Kaeser (photo Siemens), CEO of Siemens.
"Mentor complements our strong offer in mechanics and software with the design, testing and simulation of electrical and electronic systems," said Klaus Helmrich, Member of the Board of Siemens.
Mentor is headquartered in Wilsonville, Oregon, with employees in 32 countries worldwide. In financial year 2016, which ended on 31 January 2016, Mentor generated sales of approximately $ 1.2 billion and an adjusted margin of 20.2 percent. Siemens expects these attractive margins to continue in the future. As a result, Mentor will contribute significantly to the business with Product Lifecycle Management (PLM) software in the Siemens Division Digital Factory, into which the company is to be integrated. Mentor has a large and diversified customer base of key systems and semiconductor providers with over 14,000 customers worldwide in communications, computers, entertainment electronics, semiconductors, networks, aerospace, multimedia and transportation. Mentor is a global market leader in strategic industrial segments such as IC design, test and manufacturing, design and analysis of electronic systems and emerging markets, including automotive electronics.
The completion of the transaction is dependent on the usual conditions and is expected for the second quarter of the calendar year 2017. Mentor is integrated into the PLM software business of the Siemens Digital Factory. Digital Factory is a leading provider of automation and PLM software.