Manufacturing News

Siemens acquires Mentor Graphics

Siemens and Mentor Graphics have announced that they have entered into a merger agreement under which Siemens will acquire Mentor for US$37.25 per share in cash, which represents an enterprise value of US$4.5 billion.

This acquisition decisively extends Siemens’ leading Digital Enterprise Software portfolio with Mentor’s electronics IC and systems design, simulation and manufacturing solutions. These capabilities involve smart connected products such as autonomous vehicles.

The combination provides mechanical, thermal, electronic and embedded software tools which will allow users to further accelerate their innovation, drive production efficiencies and optimize the operation of their products in the field.

“Siemens is acquiring Mentor as part of its Vision 2020 concept to be the Benchmark for the New Industrial Age. It’s a perfect portfolio fit to further expand our digital leadership and set the pace in the industry,” said Joe Kaeser, president and CEO of Siemens AG.

Walden C. Rhines, chairman and CEO of Mentor added, “Siemens is an ideal partner with financial depth and stability, and their resources and additional investment will allow us to innovate even faster and accelerate our vision of creating top-to-bottom automated design solutions for electronic systems.”

The offer price represents a 21 per cent premium to Mentor’s closing price on November 11, 2016, the last trading day prior to the announcement with Mentor shareholder Elliott Management committing to support the transaction.

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