Cadence Design pulls plug on proposed acquisition of Mentor Graphics

By Lisa Kerner

Charlotte, N.C., Aug. 15 - Cadence Design Systems, Inc. withdrew its proposal to acquire Mentor Graphics Corp., it was announced on Friday.

"Mentor Graphics' failure to engage in substantive discussions on our all-cash premium proposal prevented us from confirming for our financing sources the significant synergies associated with this transaction," Cadence Design said in a statement.

"That, along with our revised outlook and the present economic climate, led us to conclude that financing terms for the transaction are no longer attractive for our shareholders," Cadence Design added.

Cadence Design's all-cash offer was valued at $1.6 billion, including Mentor Graphics' net debt of $69 million, it was previously reported.

According to Mentor Graphics, Cadence Design was facing challenges in obtaining financing and had received a second request for information from the Federal Trade Commission.

Mentor Graphics noted in its release that Cadence Design's withdrawal of the proposal was inconsistent with recent communications between the two companies.

Cadence Design, a San Jose, Calif., computer software and hardware developer, also announced that its board of directors expanded its authorized share repurchase by up to an additional $500 million, subject to market conditions.

Mentor Graphics provides electronic hardware and software design solutions, products, consulting services and support for electronics and semiconductor companies. The company is located in Wilsonville, Ore.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.