The German engineering group Siemens has agreed to buy Mentor Graphics in a $4.5 billion deal.
In the all-cash deal, Siemens will be paying $37.25 per share to MentorGraphics which tops the Friday’s closing share price by 21%. Following the deal, Siemens shares traded 1.3 percent higher.
MentorGraphics designs software for semiconductors. The startup caught the attention of the German manufacturer because of its expertise into the software domains. Siemens has been considering to expand its processes towards the software side as this is where exactly the future lies. Siemens also bought another software based engineering firm CD-adapco, earlier this year.
Siemens management board member Klaus Helmrich said in a statement, “Mentor Graphicswill complement our strong offering in mechanics and software with design, test and simulation of electrical and electronic systems”.
Mentor Graphics Pakistan Development (Private) Limited, famous for its embedded software (Nucleus OS) which is considered as one of the most deployed commercial OS in the world powering more than billion devices, was actually founded in 1999 as a subsidiary of Accelerated Technology, Inc.
Later on, the company was acquired by Mentor Graphics Corporation in 2002. Mentor Graphics Pakistan office forms a part of the Embedded Software Division of Mentor Graphics, which is the leading provider of software for electronic devices.
Mentor Embedded products has technical expertise in advanced embedded systems. The company designs solutions including open source tools, software/middleware, 2D/3D UI development, and target hardware.
Source — Reuters