Reports: Siemens To Acquire Mentor Graphics

(RTTNews) - As per a report published in Reuters, Siemens AG (SIEGY.PK, SMAWF) is nearing a deal to acquire Mentor Graphics Corp. (MENT). The deal could be valued around $4.6 billion.

Mentor Graphics is a world leader in electronic hardware and software design solutions, providing products, consulting services and award-winning support for the world's most successful electronics and semiconductor companies. The company reported revenues in the last fiscal year of approximately $1.18 billion.

In September, PM Hedge fund Elliott Management, controlled by activist investor Paul Singer, boosted its stake in Mentor Graphics to 8.1 percent. While making the announcement, the hedge fund said Mentor is "deeply undervalued" and has asked the company's board to increase shareholder value and explore strategic alternatives. At that time, Elliott said it believes "there are numerous operational opportunities, including enhancing operational efficiency and revenue quality, as well as strategic opportunities" for Mentor Graphics to improve shareholder value. The hedge fund also said it has initiated a dialogue with Mentor's Board regarding these opportunities.

On October 10, Mentor Graphics announced acquisition of Galaxy Semiconductor, a leading provider of test data analysis and defect reduction software for the semiconductor industry.