Renesas electronics to acquire Altium in $5.91 billion deal

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In a strong move to bolster its electronics design capabilities, Japanese chipmaker Renesas Electronics announced on Thursday its agreement to acquire Australian-listed electronics design company Altium for A$9.1 billion ($5.91 billion) in an all-cash deal.

The acquisition, which is subject to approval from Altium shareholders, an Australian court, and regulators, marks Renesas’ latest effort to expand its portfolio and strengthen its position in the semiconductor market. Renesas will pay A$68.50 per share, representing a 34% premium to Altium’s closing price on Wednesday.

Altium, headquartered in California and listed on the Australian stock exchange, specializes in providing tools for designing circuit boards. The acquisition is expected to enable Renesas to streamline the electronics design process for its customers, enhancing its competitiveness in the industry.

Altium reported sales of $263 million in the year ended June, with an impressive earnings before interest, taxes, depreciation, and amortization (EBITDA) margin of 36.5%. The company’s board of directors has unanimously approved the deal, with Altium stating that it was recommended in the absence of a superior offer and subject to an independent expert’s conclusion that it is in the best interests of shareholders.

Renesas’ acquisition of Altium follows its recent announcement of the purchase of California-based power semiconductor company Transphorm for $339 million. This move underscores Renesas’ strategic focus on gallium nitride chips, which are essential components in electric vehicles.

Renesas Electronics was formed in 2010 through the merger of NEC’s chip division and Renesas Technology, which itself was the result of a merger between the chip operations of Hitachi and Mitsubishi Electric. The company’s acquisition of Altium is expected to further strengthen its position as a leading provider of innovative semiconductor solutions.

Overall, the acquisition of Altium represents a significant step for Renesas Electronics as it continues to expand its capabilities and drive innovation in the semiconductor industry.

(Source: Bloomberg | WSJ | Reuters)

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