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Cadence Offers a $16 per Share Buy Out for Mentor |
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Written by Kathy Nargi-Toth
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Tuesday, 17 June 2008 |
According to Forbes the per share price offer is over 30% higher than the closing stock value for Mentor on June 16, 2008. This merger would result in the single largest EDA company, with an estimated annual revenue of over $2.3 billion.
Over the past few months, Mentor executives have reportedly resisted Cadence efforts to engage in possible merger talks. In a copy of a letter to Mentor chairman Wally Rhines, Cadence CEO Michael Fister claims "Over the last two months, we have sought to engage you and your board in discussions regarding our proposal to combine Cadence and Mentor. We are disappointed that you have thus far been unwilling to meaningfully participate in such discussions."
In a recent PCB design survey it was reported that Mentor has 43% of the PCB design tool market with Cadence holding 28%, with other companies including Zuken and Altium also participating in this market. According to recent market valuations, Cadence has a $2.91 billion value to Mentor's $1.08 billion value. |
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