Quickturn Design Systems Resists Mentor's Hostile Takeover Bid

Strategic Insights -

Quickturn Design Systems, Inc., a leading provider of verification hardware and time-to-market engineering services, has reaffirmed its commitment to a strategic merger with Cadence Design Systems, Inc. despite Mentor Graphics' latest attempt at a hostile takeover. Quickturn's president and CEO, Keith R. Lobo, stated that the company's merger with Cadence is in the best interest of its stockholders, offering them participation in Quickturn's future growth and the benefits of Cadence's proven business strategy and strong balance sheet. Mentor's takeover bid is motivated by its desire to acquire Quickturn's patents, which was the primary reason for the unsolicited offer.

Key Takeaways:

  • Quickturn Design Systems has reaffirmed its commitment to a strategic merger with Cadence Design Systems, Inc. in a tax-free, stock-for-stock transaction worth $253 million.
  • Each Quickturn shareholder will receive Cadence common stock valued at $14 per share upon closing of the merger, which will make Quickturn a wholly-owned subsidiary of Cadence.
  • Quickturn's president and CEO, Keith R. Lobo, attributed Mentor's takeover bid to the company's desire to acquire Quickturn's patents.
  • The merger involves Quickturn's products, used worldwide by developers of high-performance computing, multimedia, graphics, and communications systems.
  • Quickturn is headquartered in San Jose, Calif. and its Web site is at http://www.quickturn.com.

Statistics:

  • $253 million: Aggregate purchase price of the tax-free, stock-for-stock merger between Quickturn and Cadence.
  • $14: Value of Cadence common stock each Quickturn shareholder will receive per share upon closing of the merger.
  • December 8, 1998: Date the Quickturn board of directors approved a definitive merger agreement with Cadence.
  • December 15, 1998: Date Quickturn responded to Mentor's latest takeover maneuver.

Sources:

  • "Quickturn Design Systems, Inc. Announces Definitive Merger Agreement with Cadence Design Systems, Inc." (BUSINESS WIRE, December 15, 1998)
  • "Quickturn Design Systems, Inc." (Quickturn Web site, http://www.quickturn.com)