Cadence Design Systems Inc. (NASDAQ: CDNS) is the largest player in developing platforms for building integrated circuits. The company generates about $1.6 billion in revenues and has 5,100 employees.

Now, Cadence wants to get even bigger. Today, the company announced an unsolicited $1.6 billion bid for Mentor Graphics Corp. (NASDAQ: MENT). The offer is $16 per share.

Mentor is a big player in testing semiconductors, which should be a nice compliment to Cadence. And over the past couple months, Cadence has been trying to court Mentor.

But all advances were rejected. So why not go hostile?

The design of electronic hardware components has become so intricate a process that engineers use digital simulation products to avoid long verification cycles and the expense of manufacturing multiple prototypes. A leading provider of design automation software and systems is headquartered in Wilsonville, Oregon.

Mentor Graphics (NASDAQ: MENT) provides electronic design automation software and systems that engineers use to design, analyze, simulate, model, implement and verify the components of electronic systems. Firms use Mentor's software to produce such products as computers, routers, and cellular handsets. The company also provides consulting and support services. Mentor has business partnerships with Hewlett-Packard (NYSE: HPQ) and Sun Microsystems (NASDAQ: JAVA).

The firm pleased investors last week, when it reported Q2 EPS of 15 cents and revenues of $205.7 million. Analysts had been expecting 8 cents and $200.2 million. The CEO noted strength across all of the company's system related product lines. Management also guided FY08 EPS to $1.02 (98 cent consensus), FY08 revenues to about $860 million ($856.04M consensus), FY09 EPS to $1.22 ($1.15 consensus) and FY09 revenues to about $920 million ($912.44M consensus).