mentPaying just 2X annual revenue at $82M we learned that Mentor is acquiring a company called Valor Computerized Systems today.

valorThis appears to be another smart move by Mentor and should pay for itself in a few years if product revenues for Valor continue to grow at historic rates. I was impressed with the Valor web site for their use of Flash animation to draw me into their PCB-centric world. Valor stock has almost tripled in the past year, so that’s a positive indicator of the company’s strength, while Mentor stock has just recovered to its same level in the 8’s.

My only caution is that Valor is based mostly in Israel and Mentor is in Oregon, creating a perfect recipe for culture clash and time-zone tag. If Valor execs and software architects stay happy then this merger should work, however if Valor software architects are put-off by the merger and start leaving then we just saw the zenith of that company and its products.

Valor has a catchy tag-line on their site: Design. Plan. Assemble. Better. Wow, in just four words I basically know what they do in the PCB software space.