Merger Mogul, Cross-Border M&A News, Private Equity Real Estate Alert and Post-Merger Integration News, our free email news alerts
Cadence Withdraws Bid For Mentor
The software maker’s announcement that it would not continue pursuing an acquisition set off a round of accusations between the two companies, with Mentor Graphics claiming that the decision by Cadence to withdraw its offer is “inconsistent.”
August 18, 2008
Cadence Design Systems Inc., an electronic design automation software maker in San Jose, California, has withdrawn its offer to buy competitor Mentor Graphics Corp. for $1.45 billion.
On Friday, Cadence stated that Mentor Graphics' board and management were “unwilling to engage in substantive discussions on what we believe would have been a compelling opportunity to create significant value for both companies’ shareholders and customers.”
Cadence additionally stated that the company is authorized to repurchase up to $912 million in common shares.
Mentor, which was founded in 1981 and now employs 4,200, responded to Cadence's release by calling the decision to withdraw “inconsistent,” and additionally said that Cadence was experiencing difficulty obtaining financing.
In March, Cadence acquired Chip Estimate Corporation, a microprocessor chip planning technology company. In July 2007, Cadence acquired Invarium, a lithography-modeling developer, and Clear Shape Technologies, a manufacturing technology company.
For more information on related topics, visit the following:
