Siemens to Acquire Design Automation and Industrial Software Provider Mentor Graphics for $4.5 Billion

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

The offer price represents a 21% premium to Mentor’s closing price on November 11, 2016, the last trading day prior to the announcement.

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

Mentor Graphics is a pioneer in design automation software ranging from Integrated Circuit (IC) and System-on-Chip (SoC) design to automotive electronics solutions. Siemens wants to capitalize on this to offer mechanical, thermal, electrical, electronic and embedded software design capabilities on a single integrated platform

“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.

Closing of the transaction is subject to customary closing conditions and is expected in Q2 of calendar 2017. Mentor will be part of the PLM software business of Siemens’ DF Division.