Cadence to Buy Quickturn for $253 Million

Cadence Design Systems Inc., the largest seller of advanced design software for chips and electronics products, agreed to buy Quickturn Design Systems Inc. for $253 million in stock, or $14 a share. Shareholders of Quickturn, which makes automation tools for electronics companies, would receive Cadence common stock valued at $14 for each Quickturn share. San Jose-based Cadence’s offer tops an earlier hostile bid from Mentor Graphics Corp. of $216 million, or $12.13 a share in cash. Earlier this month, a Delaware Chancery Court judge ruled that San Jose-based Quickturn acted unreasonably when it attempted to put in place an anti-takeover defense to ward off Wilsonville, Ore.-based Mentor, clearing the way for Mentor’s purchase. Cadence said it’s interested in Quickturn for its products that test the design of chips and semiconductors. Its shares fell 81 cents to close at $29.19 on the New York Stock Exchange; Quickturn shares rose $1.63 to $13.81 on Nasdaq; Mentor fell $1.25 to $8.75, also on Nasdaq. Mentor said it would have a statement after reviewing Cadence’s offer.