Siemens Agrees To Buy U.S.-based Mentor In $4.5 Billion Deal

Siemens AG said Monday it has agreed to buy U.S.-based Mentor Graphics Corp. in a merger deal worth $4.5 billion. The German engineering company will pay $37.25 in cash for each share of Mentor, which makes software for automating the design of chips, boards and other electronic products. The offer price is a 21% premium to Mentor's closing share price on Friday, the companies said in a joint statement. Mentor's board of directors is recommending the approval of the merger, they said, and key Mentor shareholder Elliott Management has committed to supporting the deal. Siemens shares rose 1.3% in early trade, while Mentor shares were inactive in early premarket trading.