Renesas to Buy Software Firm Altium for $6 Billion
(Bloomberg) -- Semiconductor maker Renesas Electronics Corp. agreed to buy software firm Altium Ltd. for A$9.1 billion ($5.9 billion), the biggest acquisition yet of an Australian-listed company by a Japanese buyer.
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The Tokyo-based supplier to Toyota Motor Corp. said it will acquire Altium, whose software is used by the likes of Bang & Olufsen and Leica Geosystems AG, as part of a push to expand its product lineup. The companies said they aim to create a one-stop platform that allows manufacturers to better design electronics from the system level.
Renesas will buy shares in Altium, listed in Sydney but based in San Diego, for a cash price of A$68.50 each. The deal, to be financed by bank loans and cash, represents a 33.6% premium to Altium’s closing price on Wednesday. The acquisition is expected to take place in the second half of the year, pending Altium shareholder and regulatory approval, Renesas said.
The announcement catapulted shares of Altium, whose software is used to design printed circuit boards for devices, as much as 31% to hew closer to the acquisition price. Renesas shares shed 2.5%.
Electronics are becoming more complex and customers need support integrating chips into their products, Renesas Chief Executive Officer Hidetoshi Shibata said. “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.
What Bloomberg Intelligence Says
Renesas’s announced acquisition of Australian-listed software firm Altium may clear a path for it to become a semiconductor development and design platformer. Renesas could capture real needs of both sub-system customers and end users through the new platform, and also expand its customer base. A successful deal could also give Renesas a better shot at its more than $20 billion 2030 sales target.
- Masahiro Wakasugi, analyst
In 2021, Altium rejected a nearly $4 billion takeover offer from US company Autodesk. Altium said the bid was too low given the company’s growth prospects, particularly since its transition to cloud software.
“I strongly believe that electronics is the single most critical industry to building a smart and sustainable world,” Altium CEO Aram Mirkazemi said in the statement. “Renesas’ visionary leadership and commitment to making electronics accessible to all resonates strongly with Altium.”
Renesas, which also has ties with Nissan Motor Co. and Honda Motor Co., acquired UK-based Dialog Semiconductor Plc for $6 billion in 2021 and earlier bought San Jose-based Integrated Device Technology Inc. to expand beyond the automotive sector into data centers and consumer devices.
Altium is being advised by JPMorgan Chase & Co., with King & Wood Mallesons and Reed Smith LLP as legal advisers. Renesas is being advised by Deutsche Bank, with LA Piper LLP, Covington & Burling LLP and Nagashima Ohno & Tsunematsu as legal counsel.
--With assistance from Edwin Chan.
(Corrects 7th paragraph to say that Autodesk is US-based)
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