Renesas Electronics, a Japanese chipmaker, has announced a $5.9 billion all-cash deal to acquire electronics design software firm Altium. This acquisition, Renesas’ second in a month, is part of its efforts to streamline device design processes.
Japan chipmaker Renesas to buy software company Altium for $5.9 bln
The deal entails Renesas paying A$68.50 per share for Altium, representing a 34% premium over Altium’s closing price on Wednesday. Renesas plans to finance the purchase with bank loans and existing cash reserves.
Altium, headquartered in San Diego and listed in Australia, specializes in providing digital tools for designing circuit boards. Renesas aims to leverage Altium’s expertise to accelerate electronics design for its customers, particularly in the automotive sector, where Renesas supplies chips.
Renesas CEO Hidetoshi Shibata emphasized the importance of evolving beyond traditional device manufacturing to avoid marginalization in the market.
Altium CEO Aram Mirkazemi expressed optimism about the deal, highlighting its potential to enhance execution speed.
The acquisition, approved by both companies’ boards of directors, is subject to approval from Altium shareholders, an Australian court, and regulators.
Following the announcement, Renesas’ share price initially dropped before partially recovering, while Altium’s shares surged.
Analysts have generally viewed the deal positively, noting its strategic fit and the significant premium offered to Altium shareholders.
This acquisition marks Renesas’ latest move to strengthen its position in the semiconductor market, following its recent agreement to acquire Transphorm, a California-based power semiconductor company.
Renesas Electronics was formed in 2010 through the merger of NEC’s chip division and Renesas Technology, itself a merger of the chip operations of Hitachi and Mitsubishi Electric.
The transaction reflects ongoing M&A activity in Japan, with outbound deals totaling $56 billion in 2023, representing a 71% increase from the previous year.
The deal is expected to proceed smoothly, given Altium’s board’s unanimous support and the substantial premium offered to shareholders.
