OREGON: As per the terms of an agreement towards definitive merger inked on Monday, Oregon-based EDA vendor Mentor Graphics Corp will acquire Israel's Valor Computerized Systems Ltd. The buy out will involve $82 million in cash and stock.

Yavne, Israel based Valor is into productivity improvement software solutions for the printed circuit board manufacturing supply chain.

According to the two companies, Valor shareholders will be offered a combination of Mentor common shares and cash equal to about $4.60 per Valor share. The merger agreement has been approved by the two boards, but awaits necessary approval from the regulator, they said a statement.

Meanwhile, an EETimes report said shareholders owning close to 50 per cent of outstanding shares of Valor have already committed to vote in favor of the transaction.

Expected to be completed by he first quarter of year 2010, the merger will see to it that Valor would become a wholly-owned subsidiary of Mentor Graphics.

The subsidiary is expected to target three segments, such as design of the physical layout of the PC board, fabrication of the bare PC board and assembly of PC board components, in the PC board manufacturing market with its solutions.