:max_bytes(150000):strip_icc()/GettyImages-1252219324-11c7ecdd0c3d4947be0a332d049690b8.jpg "Japanese Chipmaker Renesas to Acquire Australian Software Company Altium for $5.9 Billion")
KEY TAKEAWAYS
- Japanese semiconductor firm Renesas plans to acquire Australian software firm Altium for $5.9 billion.
- The deal is expected to close in late 2024, pending approvals and customary closing conditions.
- Renesas expects the acquisition will allow it to make cheaper and more accessible electronics.
Japanese semiconductor firm Renesas Electronics said on Thursday that it will acquire Australian software company Altium Limited for 9.1 billion Australian dollars ($5.9 billion).
Renesas will pay 68.5 Australian dollars per share for the Sydney-listed company, representing a 34% premium to Altium’s closing price on Wednesday.
Renesas said owning Altium would help it simplify complex electronics-system design processes.
“This brings significantly faster innovation and lowers barriers to entry for system designers by reducing development resources and inefficiencies,” the company said in its statement.
The purchase is Renesas’s second major acquisition this year. In January, the Japanese company said it would acquire U.S. power semiconductor company Transphorm for $339 million to boost its presence in the making of chips for electric vehicles.
Altium, meanwhile, had rebuffed a $3.9 billion bid from U.S. design-software firm Autodesk (ADSK) in 2021 as too low.
Aram Mirkazemi, CEO of Altium, will continue to lead Altium after it becomes a wholly-owned subsidiary of Renesas.
Altium generated $263 million in revenue for its fiscal year ended June 30, 2023.
The deal is expected to close in late 2024, pending approvals from shareholders and regulators.