Mentor considering spin-offs to regain profitability

Mentor considering spin-offs to regain profitability
Tom Foremski
Mentor Graphics is reportedly considering spinning off some of its business units to help them take advantage of fast growing markets while the parent firm reorganises to integrate recent acquisitions.
Mentor says it has not made any decision on any divestitures. But industry sources say that Mentor is looking at spinning off its Exemplar Logic and Precedence businesses through an initial public offering.
The move could help Mentor regain profitability and refocus its business on more profitable markets. Speculation that Mentor will soon announce the spin-offs drove up its stock recently to near its 52 week high.


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