Mentor Graphics has launched a contested bid for Flomerics.
It is offering 104p a share in cash for the electronic simulation software developer, which values it at £25.5m. The shares rose 13p to 102p.
The board of Flomerics has rejected the offer. It doesn’t feel that it reflects the true value of the business. Discussions are taking place with other potential bidders but they are at an early stage.
Nasdaq-quoted Mentor owns 29.84% of Flomerics and all of the stake was acquired at 104p a share. It believes that Flomerics’ products fit well with its own electronic design automation software products.
© 2021 Aim Micro. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.