Japanese chipmaker Renesas Electronics has announced its plans to acquire Sydney-listed software company Altium for a staggering $5.9 billion. The deal, with an equity value of $9.1 billion Australian dollars, is set to streamline Renesas’ electronics design process.
Renesas is offering AU$68.50 per share, representing a 33.6% premium to Altium’s closing price of AU$51.26 on Wednesday. This move has caused Australia-listed shares of Altium to surge nearly 30% to near AU$66, while Tokyo-listed Renesas experienced a 3.2% decline.
The acquisition is a strategic step for Renesas as it seeks to better manage electronics designing for customers, leveraging Altium’s expertise in making tools to design chip circuit boards.
Industry experts have highlighted the significance of this acquisition, with Jesper Koll, expert director at Monex Group, emphasizing Japan Inc’s determination to regain global leadership in the chip-making ecosystem. Koll pointed out that Japanese firms have substantial cash reserves and are benefitting from de-facto zero interest rate funding from the government, enabling them to fund acquisitions and build a comprehensive chips ecosystem.
According to Koll, it is reasonable to forecast that by 2028-2030, Japan Inc could own and operate as much as one-third of the global chip-making ecosystem, more than double its current share.
The deal has received unanimous approval from the board of both companies, but its completion is subject to approvals from Altium shareholders, Australian court, and regulators, Renesas confirmed.
CEO of Altium, Aram Mirkazemi, expressed excitement about the collaboration, stating, ‘Having worked closely with Renesas as a partner for nearly two years, we are excited to be part of the Renesas team as we continue to successfully execute and grow.’
This acquisition follows Renesas’ recent agreement to purchase Nasdaq-listed Transphorm for $5.10 per share in an all-cash deal worth $339 million, providing Renesas with in-house gallium nitride chips used in electric vehicles.
The acquisition of Altium marks a significant move for Renesas, positioning the company for a stronger foothold in the global chip-making landscape.
