The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Bloomberg
Siemens AG agreed to buy Mentor Graphics Corp. for $4.5 billion in its biggest
acquisition since 2014 as the German engineering company extends its industrial software capability. Siemens will pay $37.25 a share in cash for Wilsonville, Oregon-based Mentor, the industrial giant said in a statement on Monday.
That’s 21 percent above the closing price on Friday. Elliott Management Corp., which owns 8.1 percent of Mentor’s shares, backs the offer, Siemens said. “It’s a perfect portfolio fit to further expand our digital leadership and set the pace in the industry,†Chief Executive Officer Joe Kaeser said in the statement.
The deal follows Siemens’s $970 million January purchase of US computer-program maker CD-adapco of the US as Kaeser seeks to grow the digital business as part of a retreat from consumer-oriented products to focus on industrial applications. Mentor is the biggest acquisition announced by the Munich-based company since it agreed to buy Dresser-Rand Group Inc. for $7.6 billion.
For its part, Mentor was under pressure to increase shareholder value from activist investor Elliott, which doubled its stake to 8.1 percent in September.
Mentor shares surged 19 percent to $36.52 in pre-market trading before US exchanges opened. Siemens rose 1.5 percent to 109.75 euros as of 11:31 a.m. in Frankfurt, extending the year’s gain to 22 percent.