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Shares of chip design software maker Innoveda Inc. surged 63% on April 24 on news that larger rival Mentor Graphics Corp. would acquire the struggling company for $160 million in cash.
Terms call for Wilsonville, Ore.-based Mentor to begin a tender offer April 30 under which it would pay $3.95 for each of Marlboro, Mass.-based Innoveda's 40 million outstanding shares. The consideration places a 66% premium on Innoveda stock, based on the company's Tuesday closing price of $2.38 per share.
Holders of 39% of Innoveda's equity have agreed to tender their shares in favor of the deal, the companies said.
For Mentor, the deal boosts its growing stature as a major player in the electronic design automation market. EDA companies develop software used to design and verify designs of increasingly complex semiconductors and other electronic components.
The company, the third-largest in the EDA sector, is wrapping up its $102 million cash acquisition of IKOS Systems Inc. Mentor won the transaction after a three-month battle to...