NEW YORK (CNNfn) - Mentor Graphics Corp. said Wednesday it has made an all-cash offer to acquire Quickturn Design Systems Inc. in an unsolicited bid valued at $216 million.
Mentor said it is offering $12.125 a share for Quickturn, which represents a 51.6-percent premium over the smaller technology company's Tuesday closing price of $8 a share. Mentor said the offer expires Sept. 9.
Mentor also said it is filing with the Securities and Exchange Commission Wednesday to call a special meeting of Quickturn's stockholders to replace Quickturn's board of directors with Mentor nominees.
Mentor and Quickturn officials couldn't be reached for immediate comment, though the Wall Street Journal reported Quickturn vice president Raymond Ostby wasn't aware of Mentor's interest until Tuesday night.
The paper reported the bid may trigger Quickturn to adopt a "poison pill" takeover defense.
Both companies make design tools that help engineers develop chips for use in cellular phones, personal computers and networking equipment. Mentor and Quickturn have been involved in a lengthy patent-infringement suit.
"We believe that the acquisition could eliminate these protracted, costly and distracting legal issues," Walden Rhines, Mentor president and chief executive officer, said.
Mentor said it expects the deal to add to its earnings in the third quarter after completion. The company also said it expects to achieve $30 million in cost savings in 2000 through job cuts, elimination of legal expenses and manufacturing efficiencies.
Mentor said it anticipates a six-month transition to integrate the businesses.
Mentor (MENT) shares closed at 9-1/4, off 1/4 in Tuesday trading. Quickturn (QKTN) shares finished up 1/4 at 8.