Renesas Electronics Corporation (TSE: 6723) has announced its plans to acquire Altium Limited (ASX: ALU) in a noteworthy A$9.1 billion deal. The acquisition is structured through a Scheme Implementation Agreement (SIA) under Australian law, and upon completion, Renesas will acquire all outstanding shares of Altium for a cash price of A$68.50 per share.
The collaboration between Renesas, a prominent semiconductor solutions provider, and Altium, a global leader in electronics design systems, seeks to simplify and streamline the electronics design process. As technology advances, the complexity of designing and integrating electronic systems has increased, prompting the need for a more integrated and open approach.
Under a shared vision, Renesas and Altium aim to establish an integrated and open electronics system design and lifecycle management platform. This platform is designed to facilitate collaboration across component, subsystem, and system-level design, addressing challenges faced by engineers in the current electronics system design flow.
Hidetoshi Shibata, CEO of Renesas, stated, “With our Purpose ‘To Make Our Lives Easier’ in mind, our vision is to make electronics design accessible to the broader market to allow more innovation through a cloud-based platform. Addition of Altium will enable us to deliver an integrated and open development platform, making it easier for businesses of all sizes and industries to build and scale their systems.”
Aram Mirkazemi, CEO of Altium, expressed optimism about being part of the Renesas team, saying, “I strongly believe that electronics is the single most critical industry to building a smart and sustainable world. Renesas’s visionary leadership and commitment to making electronics accessible to all resonates strongly with Altium.”
Altium, founded in Australia in 1985, has evolved into a global market leader in printed-circuit board (PCB) design tools. Renesas had previously standardized the development of all PCB designs on Altium’s cloud-based platform, Altium 365. This acquisition marks Renesas’ first significant step in bringing enhanced user experience and innovation at the system level for electronics system designers.
The transaction, unanimously approved by the boards of both companies, is expected to close in the second half of 2024, subject to regulatory approvals and other customary closing conditions. Altium will continue to be led by CEO Aram Mirkazemi as a wholly-owned subsidiary of Renesas.
Financially, the acquisition strengthens Renesas’ profile, providing significant value to shareholders by accelerating Renesas’ Digitalization strategy. Renesas plans to finance the transaction with bank loans and cash on hand, and the transaction is not subject to any financing condition.
Deutsche Bank is serving as the exclusive financial advisor to Renesas, while J.P. Morgan Securities LLC is serving as the exclusive financial advisor to Altium.
