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.
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