Renesas Electronics to Buy Design Software Company Altium for $5.9 Billion

Japanese semiconductor company Renesas Electronics announced its acquisition of electronics design software firm Altium for $5.89 billion in cash. The move aims to optimize Renesas’ electronics design process.

Renesas Electronics, a prominent Japanese semiconductor giant, has made headlines with its recent announcement of plans to acquire Altium, an electronics design software company, for a sum of 9.1 billion Australian dollars ($5.89 billion) in cash. This strategic move is aimed at bolstering Renesas’ electronics design process by streamlining operations and integrating advanced software solutions into its semiconductor offerings.

This transaction perfectly aligns with Renesas’ digitalization strategy and marks the company’s inaugural stride toward delivering enhanced user experiences and fostering innovation at the system level for electronics system designers.

Renesas Electronics’ mission is to innovate and simplify electronics for a smarter, safer, and more sustainable world. With the increasing complexity of electronic devices and the growing demand for seamless integration of chips into various products, Renesas sees an opportunity to enhance its capabilities and expand its market reach by partnering with Altium.

According to Financial Times, the offer, endorsed by the Altium board, comes at a 34 percent premium to Altium’s share price and stands 31 percent higher than its previous peak. Aram Mirkazemi, the chief executive of Altium said:  “I strongly believe that electronics is the single most critical industry to building a smart and sustainable world”. He sees Altium’s collaboration with Renesas as an opportunity to further accelerate innovation and drive positive change in the industry.

In 2021, US company Autodesk made a bid to acquire Altium with an A$5.25 billion offer, which Altium rejected, deeming it as undervaluing their business.

Renesas Chief Executive Officer Hidetoshi Shibata said electronics are becoming more complex and customers need support integrating chips into their products. “By teaming up with Altium, we can make the world of electronics easier, cheaper, and more accessible to a wider range of market participants,” he said during a news conference, adding that Altium will operate independently, according to Yahoo! Finance.

With a common vision in mind, Renesas Electronics and Altium will unite their strengths to create an integrated and open electronics system design and lifecycle management platform. This platform will facilitate collaboration across various levels of design, including components, subsystems, and system-level architecture.

The market responded strongly to the announcement. Following Thursday’s market open, the stock surged over 30% after Altium announced it had reached a binding agreement with Renesas Electronics on a cash proposal valued at 68.50 Australian dollars (US$44.46) per share, as reported by Morningstar. Altium shares reached A$67.00 in early trading and currently stand at A$66.58, up from A$51.26 at Wednesday’s close.

The deal is anticipated to be finalized in the second half of 2024, pending approval from shareholders and regulators.

About Renesas Electronics:

Renesas Electronics is the world’s leading semiconductor manufacturer. Their mission is dedicated to creating a world that is safer, healthier, greener, and smarter, ultimately striving to simplify and improve lives.

About Altium:

Altium LLC (ASX:ALU), a global software company based in San Diego, California, is accelerating the pace of innovation through electronics. Catering to a diverse clientele, from individual inventors to multinational enterprises, Altium software is the top choice for PCB designers and engineers worldwide.

For over 30 years, Altium has been delivering software that maximizes the productivity of PCB designers and electrical engineers, from idea to board. Through its innovative Business-to-User approach, Altium prioritizes developing user-friendly software solutions that facilitate seamless implementation and foster innovation, ultimately driving industry-leading productivity for its users.

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