To provide the electronics industry with a PCB systems solution from concept through manufacturing, Wilsonville, Ore.-based EDA and DFM tool provider Mentor Graphics Corp. reported today that it has acquired Valor Computerized Systems Ltd. for net consideration valued at approximately $50 million.

Mentor said it paid approximately 5.6 million shares of Mentor stock and $32.5 million in cash for Valor. Immediately prior to the closing of the deal, Valor had approximately $29 million in cash, and revenues for its last reported full year ending December 31, 2008 were approximately $40 million.

Valor products include printed circuit board (PCB) design for manufacturing (DFM) and manufacturing execution (MES) systems which target three key segments in the PCB manufacturing market: design of the physical layout of the PCB, fabrication of the bare PCB, and assembly of PCB components.

“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. 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,” said Henry Potts, VP and general manager of the Systems Design Division of Mentor, in a statement.

With this acquisition, Mentor claims it is the first major EDA vendor to extend its scope into the market for PCB systems manufacturing solutions, which will benefit the electronics industry by allowing electronics companies to eliminate technical barriers and inefficiencies between design and manufacturing.

Further, Mentor believes this acquisition puts it 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. 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,” said Dan Hoz, former Valor CEO and now general manager of the newly-formed Valor division of Mentor, in a statement.

The Valor division will continue to develop solutions for the manufacturing market, reinforcing both companies’ 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.

By: DocMemory
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