Siemens expects the acquisition of Mentor to add to its earnings within three years and result in savings that will lift earnings before interest and tax (EBIT) by more than 100 million euros ($108 million) within four years. Follow CNBC International on Twitter and Facebook. The agreement comes almost six years after activist investor Carl Icahn unsuccessfully pushed for a sale of Mentor. The value of the transaction includes net debt.
He bid $17 a share in February 2011 for Mentor in an attempt to lure other suitors for the software maker. People familiar with the matter had flagged the planned deal to Reuters, saying Siemens would pay $4.5 billion to $4.6 billion for Mentor.
Wells Fargo Fires More Than 100 Workers for Abusing U.S. Aid, Stocks Decline Amid Virus Jitters; Banks Rally: Markets Wrap, Hong Kong-Singapore Travel Bubble to Reopen Financial Hub Links, U.S. Jobless Claims Hit Highest Since August in Unexpected Jump, BTS Band Members Make Millions as Big Hit Shares Jump in IPO. The agreed price isn’t overly expensive and will make Siemens more competitive in the industrial software business, German brokerage Baader Helvea said in a note to clients. Got a confidential news tip? Data is a real-time snapshot *Data is delayed at least 15 minutes. Updates with executive comments starting in fourth paragraph.
Siemens’s digital factory unit, which will house Mentor after the deal closes, contributed 10.2 billion euros to Siemens’ 79.6 billion euros of revenue in the financial year through September, according to data compiled by Bloomberg. Have a confidential tip for our reporters? Global Business and Financial News, Stock Quotes, and Market Data and Analysis. The asset is a perfect fit and will set the pace in the industry, Siemens Chief Financial Officer Ralf Thomas said on the call, adding that there will be some job cuts resulting from the combination.
Before it's here, it's on the Bloomberg Terminal. “This offers a unique opportunity to design products in a more holistic way.”. Elliott, run by billionaire Paul Singer, said when it raised its stake it saw numerous opportunities to boost Mentor’s “deeply undervalued” shares and had started talks with the company’s management and board. It provides a complete semiconductor design flow that includes simulation, emulation, place and route, verification, design for manufacturing, and test. For its part, Mentor was under pressure to increase shareholder value from activist investor Elliott, which doubled its stake in September.
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The result was Siemens’ $4.5 billion takeover of Mentor Graphics, which Grindstaff says will put Siemens on the map in the world of integrated circuit design. 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.
Mentor Graphics will significantly increase our Siemens Software revenue Transaction structure •Acquisition of 100% of Mentor Graphics shares outstanding •Offer price of $37.25 per share; 21% premium to Nov 11, 2016 close •Enterprise Value $4.5bn (~€4.2bn) •Revenue multiple2 3.5x; EBITDA multiple2 14.5x •Friendly transaction The deal follows Siemens’s $970 million January purchase of U.S. computer-program maker CD-adapco of the U.S. as Chief Executive Officer Joe Kaeser seeks to grow the digital business as part of a retreat from consumer-oriented products to focus on industrial applications.
German company seeking to expand in industrial software, Deal is Siemens’s biggest since Dresser-Rand two years ago. Elliott Management Corp., which owns 8.1 percent of Mentor’s shares, backs the offer, Siemens said. Cost savings of more than 100 million euros ($108 million) per year are expected by the fourth year of ownership, Thomas said.
That’s 21 percent above the closing price on Friday. “The footprint of Mentor Graphics will allow us to reach a lot more customers,” Siemens software executive Chuck Grindstaff said on a conference call. Mentor, a Siemens Business, is a broad line EDA supplier. SAN FRANCISCO — Siemens closed the acquisition of Mentor Graphics in March 2017.
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