Shares in the US software firm surged 19% to US$36.50, as its board agreed to recommend shareholders accept an offer of US$37.25 in cash per share.
The big deal came on the same day that Samsung swooped for Harman International, and both target companies have something in common: the Internet of Things.
Mentor is a supplier of electronic design automation tools, and a pioneer in the design automation software field ranging from integrated circuit and system-on-chip design to automotive electronics solutions.
“Siemens is acquiring Mentor as part of its Vision 2020 concept to be the Benchmark for the New Industrial Age,” said Joe Kaeser, president and chief executive of Siemens AG.
Klaus Helmrich, a member of the managing board of Siemens, added: “With Mentor, we’re acquiring an established technology leader with a talented employee base that will allow us to supplement our world-class industrial software portfolio. It will complement our strong offering in mechanics and software with design, test and simulation of electrical and electronic systems.”
Siemens is paying a hefty price for Mentor’s technology and expertise and reckons it will take up to three years before the acquisition enhances earnings per share.
“By adding Mentor’s electronic design automation solutions and talented experts to our team, we’re greatly enhancing our core competencies for product design that creates a very precise digital twin of any smart product and production line,” Helmrich claimed.
Story by ProactiveInvestors