Cadence Design Systems has withdrawn its $1.5 billion bid to acquire rival Mentor Graphics.
Cadence had made an offer in June to buy the chip-design software company, but said in a statement Friday that Mentor's board and management "were unwilling to engage in substantive discussions."
"That, along with our revised outlook and the present economic climate, led us to conclude that financing terms for the transaction are no longer attractive for our shareholders," the San Jose, Calif., company said.
Mentor Graphics rejected the offer last month, saying it was too low, according to Reuters. The company, based in Wilsonville, Ore., released a statement Friday in response to Cadence's news. "This withdrawal is inconsistent with both Cadence's recent public statements and recent communications between Mentor Graphics and Cadence," the company said.
Cadence also said Friday that it is expanding its stock buyback program. The board of directors has approved adding $500 million to the program, bringing the total amount to about $912 million.