Siemens acquires Mentor Graphics for $4.5 billion

Siemens has announced that it will acquire Mentor Graphics for $4.5 billion with the aim of expanding its software business.

In an effort to expand its software business, Siemens has announced that it will acquire Mentor Graphics for $4.5 billion in cash.

Mentor creates tools which are used to design semiconductors and this acquisition, along with Siemen's purchase of CD-adapco earlier this year for almost $1 billion, will allow the company to pursue its plans to invest in software.

Klaus Helmrich, a management board member at Siemens, noted that purchasing Mentor will “complement our strong offering in mechanics and software with design, test and simulation of electrical and electronic systems.”

According to regulatory findings, Mentor employs over 5,700 staff in 32 countries and will earn around $1.2 billion in revenue by the end of January 2016. Recently the company has faced a great deal of pressure from investors to change the way it operates after the Australian management firm Cadence tried to takeover the business in 2008. In September of this year, Elliott Management took over eight per cent of Mentor and the company responded by reaching out to the Bank of America. The bank offered a number of options for it to explore but in the end the company settled on selling its business off to Siemens which Elliott Management has greed to support.

Siemens itself is currently undergoing a great deal of change as part of its Vision 2020 strategy which highlights software as a key focus for the company going forward. As it stands now, only five per cent of its 350,000 staff are software engineers and the company is actively working to raise that figure.

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Anthony currently resides in South Korea where he teaches and experiences Korean technological advances first hand.