Ad
Ad
Ad
Ad
Ad
Ad
Ad
Ad
Software | June 17, 2008

Cadence proposes acquisition of Mentor

Cadence Design Systems submitted a proposal to the Board of Directors of Mentor Graphics to acquire Mentor Graphics for $16.00 per share in cash.
Cadence's all-cash proposal, which is not subject to any financing condition, represents a 30% premium over the closing price of Mentor Graphics common stock on June 16, 2008, the last trading day prior to public disclosure of Cadence's proposal, a 59% premium over the closing price of Mentor Graphics common stock on May 2, 2008, when Cadence presented the terms of the proposal to Mentor Graphics, and a 46% premium over Mentor Graphics' average closing price for the past 30 trading days.

The transaction price represents a total enterprise value of $1.6 billion on a fully diluted basis, which reflects Mentor Graphics' net debt of $69 million.

"A combined Cadence-Mentor will offer customers a broader and more integrated product and technology portfolio in a timeframe that better enables them to address challenges associated with their next-generation product development," said Michael J. Fister, president and chief executive officer of Cadence.

Cadence's proposal is subject to the negotiation of a mutually agreeable merger agreement, the completion of certain limited and confirmatory due diligence, and the satisfaction of other customary conditions, including receipt of regulatory approvals.

Deutsche Bank Securities Inc. is acting as financial advisor to Cadence and Davis Polk & Wardwell is acting as legal counsel.

Comments

Please note the following: Critical comments are allowed and even encouraged. Discussions are welcome. Verbal abuse, insults and racist / homophobic remarks are not. Such comments will be removed.
Further details can be found here.
Ad
Ad
Ad
Ad
Load more news
November 14 2017 8:30 PM V8.8.9-2