Key Points:
- Renesas Electronics acquires Altium in an A$9.1 billion ($5.9 billion) all-cash deal.
- The acquisition positions Renesas as a key player in electronics design and the global semiconductor market.
- Altium specializes in providing advanced tools for circuit board design, including the cloud-based PCB design software Altium 365.
- The deal represents a 34 percent premium to Altium’s closing price on Wednesday.
In a strategic move to reshape the global semiconductor industry, Japanese chipmaker Renesas Electronics is poised to acquire Altium, an Australian-listed electronics design company, for A$9.1 billion ($5.9 billion). The all-cash transaction, at A$68.50 per share, represents a substantial 34 percent premium to Altium’s closing price on Wednesday.
Altium, headquartered in California and listed on the Australian Stock Exchange, specializes in providing advanced tools for circuit board design. Renesas aims to leverage this acquisition to streamline the electronics design process, positioning itself as a leading provider in the semiconductor market.
Altium’s flagship product, Altium 365, is a cloud-based PCB design software that fosters collaboration across the entire design process. Renesas had already standardized the development of PCB design on the Altium 365 platform in 2023. The collaborative effort with Altium allows Renesas to publish its products’ ECAD libraries to the Altium Public Vault, enabling customers to seamlessly integrate Renesas parts into their designs for faster time to market.
In the fiscal year ending June, Altium reported robust sales of $263 million, boasting an impressive EBITDA margin of 36.5 percent. Renesas plans to finance the acquisition through bank loans and its existing cash reserves.
This strategic move follows Renesas’ recent announcement of its intent to acquire Transphorm, a California-based power semiconductor company, for $339 million. Renesas strategically focuses on gallium nitride chips, particularly relevant in the electric vehicles sector, aligning with its broader growth strategy.
Renesas Electronics, formed in 2010 through the merger of NEC’s chip division and Renesas Technology, has been a trailblazer in semiconductor innovation. Its merger history includes the chip operations of Hitachi and Mitsubishi Electric, solidifying its position as a key player in the semiconductor industry.
The acquisition of Altium marks a pivotal step for Renesas, allowing it to broaden its portfolio, enhance its offerings in electronics design, and strengthen its standing as a leading force in the dynamic and competitive semiconductor landscape.
