Siemens To Buy Mentor Graphics For Enterprise Value Of $4.5 Bln

(RTTNews) - Siemens AG (SIEGY.PK, SMAWF) agreed to acquire Mentor Graphics (MENT) for $37.25 per share in cash, which represents an enterprise value of $4.5 billion, the companies said.

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

"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.

Mentor's Board of Directors approved and declared advisable the merger agreement, and Mentor's Board of Directors recommends the approval and adoption of the merger agreement by the holders of shares of Mentor common stock. Mentor shareholder Elliott Management has committed to support the transaction.

Siemens expects to achieve synergies through a combination of revenue growth and anticipated margin expansion, with a total EBIT impact of over 100 million euros within 4 years from closing the transaction. Additionally, the transaction is expected to be EPS accretive within three years from closing. 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. DF is the industry leader in automation technology and a leading provider of PLM software.