Chipmaker Renesas to buy software company Altium
TOKYO: Japanese chipmaker Renesas Electronics has announced a US$5.9bil all-cash deal to buy electronics design software firm Altium , its second acquisition in a month, as it works to streamline device design.

Renesas said yesterday it will pay A$68.50 a share for Altium in a 34% premium to its Wednesday closing price, with the purchase financed with bank loans and cash on hand.

Altium offers digital tools for designing circuit boards. Through the deal Renesas, which makes chips for automakers, intends to speed up the process of electronics design for customers.

“So long as we remain a traditional device manufacturer we will only be marginalised,” Renesas chief executive Hidetoshi Shibata told a news conference.

Headquartered in San Diego and listed in Australia, Altium booked sales of US$263mil in the year ended June with an earnings before interest, taxes, depreciation and amortisation margin of 36.5%

“This is going to help us execute at a faster pace,” said Altium chief executive officer Aram Mirkazemi.

The deal, which has been approved by the boards of directors of both companies, will require approval from Altium shareholders, an Australian court and regulators, Renesas said.

Renesas’ share price fell as much as 4.9% before paring losses to trade down 0.5% at 2,589 yen. Altium shares, which had risen 9.4% this year at the last close, jumped 28% to A$65.80.

“They don’t seem to be overpaying,” said Tatsunori Kawai, chief strategist at au Kabucom Securities. — Reuters
Corporate News,RenesasAcquisition,Altium,ChipmakerSoftware,ElectronicsDesign
Japanese chipmaker Renesas Electronics has announced a US$5.9bil all-cash deal to buy electronics design software firm Altium , its second acquisition in a month, as it works to streamline device design.