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Filed under: Deals

Cadence Design Systems Inc. (NASDAQ: CDNS) is the largest player in developing platforms for building integrated circuits. The company generates about $1.6 billion in revenues and has 5,100 employees.

Now, Cadence wants to get even bigger. Today, the company announced an unsolicited $1.6 billion bid for Mentor Graphics Corp. (NASDAQ: MENT). The offer is $16 per share.

Mentor is a big player in testing semiconductors, which should be a nice compliment to Cadence. And over the past couple months, Cadence has been trying to court Mentor.

Cadence Design Systems (CDNS) this morning offered to buy Mentor Graphics (MENT) for $16 a share in cash, or a total of $1.6 billion in a fully diluted basis, including the assumption of $69 in net debt.

Mentor Graphics (MENT) this morning posted revenue for its fiscal first quarter ended April of $179.2 million, with a net loss of 10 cents a share. The Street had expected $170.1 million and a loss of 10 cents.

For Q2, the company sees revenue of $173 million and a loss of 10-15 cents a share; that is well below the Street forecast of $194.4 million and a profit of 3 cents a share.