Renesas Acquires Altium in $5.9 Billion All-Cash Deal for Streamlined Electronics Design


JapaneseJapanese chip manufacturer Renesas Electronics has announced a $5.9 billion all-cash deal to acquire electronics design software firm Altium, marking its second acquisition in a month. Renesas will pay A$68.50 per share for Altium, representing a 34% premium to the Wednesday closing price. The purchase will be financed through a combination of bank loans and available cash. Altium specializes in digital tools for designing circuit boards, and Renesas, known for producing chips for automakers, aims to expedite the electronics design process for its customers through this acquisition.

Renesas CEO Hidetoshi Shibata emphasized the need to evolve beyond traditional device manufacturing to avoid marginalization. Altium, headquartered in San Diego and listed in Australia, reported $263 million in sales for the fiscal year ending June, with an EBITDA margin of 36.5%. Altium CEO Aram Mirkazemi expressed confidence that the deal would enhance their execution speed.

The acquisition has received approval from both companies' boards but requires further clearance from Altium shareholders, an Australian court, and regulators. Renesas' share price initially fell by 4.9% before recovering to trade down 0.5% at 2,589 yen, while Altium shares surged 28% to A$65.80. The deal reflects Renesas' strategic focus on semiconductor advancements, following its recent acquisition of California-based Transphorm for $339 million, concentrating on gallium nitride chips used in electric vehicles.

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