The German Industrial giants Siemens made an announcement regarding multi-billion dollar purchases of Mentor Graphics Corporation so as to push and boost up its software capabilities henceforth expanding it globally.
Widening its U.S. footprints globally would help Siemens to grow profitably eventually setting its hands appropriately on the software and hardware design automation tools so as to develop as well as conduct tests of advanced electronic systems. Wilsonville, Ore-based Mentor Graphics deals in such platform which now will be handled by Siemens. The acquisition included an offering of $37.25/per share in cash, which came equally to the 21% premium which closed on Friday, thus giving the U.S. based company an equity value of almost 4 billion USD.
The closed and finalised deal will help Siemens build up its profitable industrial software and factory automation business which offers digital solutions to heavy industry manufacturing enterprises. It will further help in reshaping the firm in other countries by selling off non-core businesses which promise of faster growths and larger margins. The area of Software will boost Siemens to compete in the market eventually developing faster technology keeping a keen focus on growth in a similar sector.
Siemens Chief Executive Joe Kaeser‘s first push was during the acquisition of oil equipment maker dresser-Rand for 7.6 billion USD in 2013. Earlier in 2016, it acquired simulation software provider CD-ADAP co for $1 billion. The following deal helped Siemens grow its Digital Factory unit, this year. Last week, it had planned a public listing of healthcare businesses worth 15 billion USD which increased its share prices thus diverting the mindset in other investments.
The respective purchases of Mentor Graphics will help on adding up its earnings per share within 3 years and to lift earnings before Tax and Interest by more than 100 million Euros within the time span of 4 years. At current status, the firm generated revenue of 1.2 billion USD with an adjusted operating margin of 20.2%. The transactions procedure for the acquisitions came through Deutsche Bank and JP Morgan.