Flomerics says it is in bid talks with Autodesk.
The electronics simulation software provider is currently the subject of a 104p a share bid from Mentor Graphics. Flomerics has previously said that there were other companies’ interested in bidding for it. Autodesk is the first one that has been named. This sparked a 5.5p rise in Flomerics shares to 112.5p.
Autodesk is a major computer aided design software provider. It is much larger than Flomerics, having generated revenues of $599m in the first quarter of its current financial year. Its net income in that quarter is $94.6m and it is a strong cash generator. Autodesk generated revenues of $2.17bn and net income of $356m in the year to January 2008.
Metnor is bidding £25.5m for Flomerics. Autodesk can afford to pay more than that and still generate more than the cost of the company in one financial quarter.
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