Siemens has acquired Oregon-based Mentor Graphics, which makes tools for designing semiconductors, as the German engineering giant looks to expand its software operations.
The $4.5 billion (£3.6bn) cash deal follows Siemens’ purchase earlier this year of CD-adapco, a privately held US engineering software firm, for nearly $1bn.
Mentor makes design automation software for semiconductors including integrated circuit and system-on-chip designs and automotive electronics.
As of the end of January 2016 the company had more than 5,700 staff in 32 countries and revenues of about $1.2bn, according to regulatory filings.
Currently only 5 percent of Siemens’ 350,000 staff are software engineers, and the company’s Vision 2020 strategy marks software as a key focus.
In the meantime it is looking to spin off certain hardware operations, including a proposed spin-off of its heathcare business.
Mentor has been under pressure to make changes by activist investors in recent years and was the subject of a takeover attempt by Australian fund management firm Cadence in 2008.
Elliott Management took an 8 percent stake in the company in September, and in response Mentor engaged Bank of America to explore its options.One of those options was to sell itself to a customer such as Siemens.
Siemens said Elliott Management had agreed to support the deal.
What do you know about Uber, Airbnb and the startup scene?Try our quiz!
Oracle's huge AI, Cloud investment in Japan will meet growing local demand and address digital…
People who create sexually explicit ‘deepfakes’ of adults will face prosecution under a new law…
Protest at cloud contract with Israel results in staff firings, in addition to layoffs of…
Microsoft warns of Russian influence campaigns have begun targetting upcoming US election, albeit at a…
Microsoft to avoid an EU investigation into its $13 billion investment in OpenAI, after EC…
As President Biden 'considers' request to drop Julian Assange extradition, US provides assurances to prevent…