I had to laugh out loud when I read the press release where Cadence blames Mentor for their own failed bid.
Even more laughable was Mentor’s feigned “shock” at Cadence withdrawing their hostile bid. I’m 100% certain that there is joy and partying going on at Mentor in Wilsonville as I type these words.
I blogged earlier [...]

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Cadence stock fell some 30% today after Michael Fister talked about lower sales and earnings than expected according to an article in the Oregonian . Here’s my favorite analyst quote:
Terence Whalen, a Citigroup analyst, asked Fister whether he was the right person to continue leading Cadence, given the company’s “deterioration,” its sudden switch to a [...]

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Mentor’s latest cash offer was accepted today by the board at Flomerics.
It’s likely that the Flomerics CEO and vocal staff will not make the transition into Mentor.
I can see how the Mentor sales team could sell the Electronics Cooling tools, maybe even some of the Engineering Fluid Dynamics tools, but not the Building Heating and [...]

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Mentor just extended their cash offer to buy Flomerics at a value of just 1.2X historic revenue, however they still don’t want to be acquired. Good for them!
Let’s see if Autodesk comes to the rescue of Flomerics.
Flomerics has only one niche product for PCB designers and the rest of their product line is outside of [...]

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Interesting article in our local Oregonian newspaper about this high-tech investment banker showing up at the annual Mentor shareholder meeting last week. Nobody knows if he’s working for CDN, MENT or somebody else. It kind of reminds me of Clint Eastwood riding into town with a fast trigger finger looking for bad guys.

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I guess that my title sums up the strategic blunder that Cadence is making in their bid for Mentor Graphics.
So, why is this such a big mistake for Cadence and the EDA industry?

Product overlap - a successful acquisition has a complement of products, not extreme overlap. Both companies have tools that overlap in the following [...]

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Flomerics management is urging shareholders to reject the bid by Mentor. This reminds me more of when Mentor tried to acquire Quickturn….

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If Denali falls in love with using the BlueSpec tools to create their IP then wouldn’t it make sense for them to merge sometime into the future?
If a merger were going to happen then I would expect an OEM agreement to be a likely next step.
Denali is gradually branching out of just verification IP so [...]

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Mentor Graphics has bid to acquire Flomerics after purchasing some 26% of their stock.
Flomerics has simulators for: Electronics Cooling, Engineering Fluid Dynamics, and Building HVAC. What I see is that 1/3rd of Flomerics products have a direct connection to EDA, namely Electronics Cooling.
My son purchased an ultimate gaming system last year and has often run into [...]

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