German-based Siemens announced that it's buying Mentor Graphics (MENT) for $4.5 billion. The deal values the stock at $37.25, which comes at a premium just north of 20% to last Friday's closing.
So what does Siemens want with Mentor? Apparently the company made the acquisition to "bolster its industrial software operations and help it keep pace with changes to manufacturing technology," according to Reuters.
Staying ahead of the curve is the name of the game in an industry like this. The acquisition was not necessarily huge for a company like Siemens, which boasts a market cap of around $95 billion, depending on which exchange is used for the pricing data.
The stock is up over 22% this year alone, but just 15% over the past five years. CEO Joe Kaeser is looking to find ways to make the company more profitable and improve margins.
Obviously he views this deal as one way of achieving those goals.
Shares of Mentor Graphics closed at $36.29 Monday, up 18.3%.
There's been a pretty deadly glitch plaguing Facebook (FB) lately. Well, the term "deadly" is being used lightly, but also literally.
Last week, the company accidentally allowed a glitch through its system which turned the pages of living Facebook souls into memorial pages, saying, "We hope people who love [Blank] will find comfort in the things others share to remember and celebrate [their] life."
The company didn't take long to fix its mistake though, issuing a statement afterwards that apologized for the error.