All the shareholders of Mentor Graphics
( including the employees) are laughing
all the way to the bank as its share prices
have soared in anticipation of acquisition
by Cadence at $16 per share as against yesterday's
close of $12.33. Prices rose by as much as 27%
today. Though there is some anxiety amongst
the employees of both the companies as both
of them have competing products in many
market segments. But even if Cadence completes
the acquisition, consolidation of products is
going to take a long long time since most of their
customers have a complicated and delicate
tool flow set up and they are rather reluctant
to any kind of change.
A chat with MG employees highlights the
concern that they feel like they are in a
lose-lose situation. If the deal goes through,
some of them will obviously be laid off. If
it doesn't, Mentor's business will be impacted
since customers will always be reluctant
to buy Mentor's products due to their
uncertain future.
Some of the competing products of Cadence and Mentor :
Emulation : Veloce(Mentor) Palladium(Cadence)
Verilog Simulation : ModelSim(Mentor) NcVerilog(Cadence)
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