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Mentor Graphics shares soar after Siemens deal

Joe Kaeser, CEO of German industrial giant Siemens
Christof Stache | AFP | Getty Images

Shares of Mentor Graphics soared 18.29 percent Monday after German engineer group Siemens agreed to buy it in a $4.5 billion cash deal.

Siemens said it would pay $37.25 per share for U.S.-based Mentor Graphics, a 21 percent premium to Friday's closing price.

Siemens said it plans to use the company, which makes software for designing semiconductors, to extend its "leading Digital Enterprise Software" portfolio.

"Siemens is acquiring Mentor as part of its Vision 2020 concept to be the Benchmark for the New Industrial Age," Siemens President and CEO Joe Kaeser said in a statement. "It's a perfect portfolio fit to further expand our digital leadership and set the pace in the industry."

Mentor Graphics' stock is up 97.01 percent year to date.

Mentor Graphics 5-Day Chart

—Reuters contributed to this report.