North Atlanta Business Post Login | Register
Updated Apr 21 @ 12:21PM

Siemens acquires Oregon software maker in $4.5 billion deal


ALPHARETTA, Ga. – Alpharetta-based Siemens Industry has announced plans to acquire Mentor Graphics of Wilsonville, Oregon., in a $4.5 billion deal designed to bolster the software giant’s digital enterprise software portfolio.

Mentor Graphics is a leader in design automation software, including integrated circuit and system-on-chip design. The company employs 5,700 people, about 1,000 at its Wilsonville headquarters.

In a proxy statement filed this month with the Security and Exchange Commission, Siemens said its offer of $37.25 a share for Mentor represents a 21.4 percent premium to the $30.68 closing price Mentor posted on Nov. 11, the day before rumors of the sale were leaked in a Reuters new article.

Mentor stock had traded at close to $25 a share back in September.

Last month, Reuters reported Mentor Graphics has been under pressure since activist hedge fund Elliott Management Corp reported an 8.1 percent stake in the company in September and said its shares were deeply undervalued.

“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.

The proxy filing includes details of the compensation Mentor executives will receive in the acquisition. Chief Executive Wally Rhines will receive $25 million, including $18.9 million from stock awards. Mentor President Gregory Hinckley will receive $19.9 million, including $15 million from vesting stock.

Siemens, with global headquarters in Munich, has operations in close to 190 countries and employs some 360,000 people. It has about 2,500 employees in metro Atlanta.

No comments on this story | Add your comment
Please log in or register to add your comment
+ New Business Spotlight
Business name: NEVO Driving AcademyOwner: Robert DillmanAbout: NEVO Driving Academy is an award-winning provider of driver’s education and in-car driving lessons. Their instructors are …
Latest Local News
ALPHARETTA, Ga. — The highly anticipated Phase II of Avalon opened its doors April 13 to a cheering crowd and champagne toast. Dubbed Boulevard East, this expansion adds 1,000 new jobs, 350 …
+ New Business Spotlight
Business name: Autumn Leaves of Windward About: Autumn Leaves of Windward is a family owned and operated assisted living community solely dedicated to the care and wellbeing of those living with …