Mentor Graphics Acquires Valor Computerized Systems

Mentor Graphics Corporation announced completion of the acquisition of Valor Computerized Systems Ltd for net consideration valued at about $50 million. Mentor paid approximately 5.6 million shares of Mentor stock and $32.5 million in cash. Immediately prior to closing, Valor had cash of approximately $29 million. Valor’s revenues for its last reported full year ending December 31, 2008 were approximately $40 million.

"Valor’s expertise and products in the manufacturing segment are an excellent fit to Mentor’s in the PCB design area as together we provide a concept-through-manufacturing design solution to our customers,” stated Henry Potts, Vice President and General Manager of the Systems Design Division of Mentor Graphics. "This acquisition will reinforce our number one position in PCB design while enabling Valor to leverage the strengths of Mentor and accelerate their delivery of differentiated design for manufacturing and manufacturing execution products.”

Mentor said that by acquiring Valor, the company is the first major EDA vendor to extend its scope into the market for PCB systems manufacturing solutions. This will benefit the electronics industry by enabling electronics companies to finally eliminate the long-standing technical barriers and inefficiencies between the worlds of design and manufacturing. Mentor added that it will be in a unique position to deliver an efficient, bi-directional engineering process between designers, their partners in systems manufacturing, and the product supply chain.

"This is a very exciting opportunity for all of us,” said Dan Hoz, former Valor CEO and now General Manager of the newly-formed Valor division of Mentor Graphics. "With both companies occupying leading positions in their respective markets, our combined expertise can deliver a breakthrough in operational integration between the world of design and the supply chain oriented world of manufacturing, for the benefit of the entire electronics industry. We foresee a promising future for Valor as a division of Mentor Graphics.”

The development of solutions for the manufacturing market will remain a core activity of the Valor division, reinforcing Valor’s and Mentor’s long term commitment to deliver solutions and support to the manufacturing market, as well as powerful integration of design for manufacturing functionality into Mentor and non-Mentor PCB design environments.

www.mentor.com/valor