-
- News
- Books
Featured Books
- design007 Magazine
Latest Issues
Current IssuePartial HDI
Our expert contributors provide a complete, detailed view of partial HDI this month. Most experienced PCB designers can start using this approach right away, but you need to know these tips, tricks and techniques first.
Silicon to Systems: From Soup to Nuts
This month, we asked our expert contributors to weigh in on silicon to systems—what it means to PCB designers and design engineers, EDA companies, and the rest of the PCB supply chain... from soup to nuts.
Cost Drivers
In this month’s issue of Design007 Magazine, our expert contributors explain the impact of cost drivers on PCB designs and the need to consider a design budget. They discuss the myriad design cycle cost adders—hidden and not so hidden—and ways to add value.
- Articles
- Columns
Search Console
- Links
- Events
||| MENU - design007 Magazine
Renesas to Acquire PCB Design Software Leader Altium
February 15, 2024 | RenesasEstimated reading time: 5 minutes
Renesas Electronics Corporation, a supplier of advanced semiconductor solutions, and Altium Limited, a global leader in electronics design systems, announced they have entered into a Scheme Implementation Agreement (SIA) for Renesas to acquire Altium by way of a Scheme of Arrangement under Australian law. Under the terms of the transaction, subject to satisfaction of a number of conditions, Renesas will acquire all outstanding shares of Altium for a cash price of A$68.50 per share, representing a total equity value of approximately A$9.1 billion (approximately 887.9 billion yen at an exchange rate of 97 yen to the A$) and an enterprise value of A$8.8 billion (approximately 859.3 billion yen at an exchange rate of 97 yen to the A$). The acquisition enables two industry leaders to join forces and establish an integrated and open electronics system design and lifecycle management platform that allows for collaboration across component, subsystem, and system-level design. The transaction strongly aligns with Renesas’ digitalization strategy and represents the company’s first significant step in bringing enhanced user experience and innovation at the system level for electronics system designers.
As technology advances, the design and integration of electronic systems become increasingly complex. The current electronics system design flow is a complicated and iterative process that involves multiple stakeholders and design steps, from component selection and evaluation to simulation and PCB physical design. Engineers must be able to design systems that are not only functional but also efficient and cost-effective under shortened development cycles.
Together, Renesas and Altium, under a shared vision, aim to build an integrated and open electronics system design and lifecycle management platform that unifies these steps at a system level. The acquisition brings together Altium’s sophisticated cloud platform capabilities with Renesas’ strong portfolio of embedded solutions, combining high-performance processors, analog, power and connectivity. The combination will also enable integration with third-party vendors across the ecosystem to execute all electronic design steps seamlessly on the cloud. The electronics system design and lifecycle management platform will deliver integration and standardization of various electronic design data and functions and enhanced component lifecycle management, while enabling seamless digital iteration of design processes to increase overall productivity. This brings significantly faster innovation and lowers barriers to entry for system designers by reducing development resources and inefficiencies.
“Development processes continue to evolve and accelerate. With our Purpose “To Make Our Lives Easier” in mind, our vision is to make electronics design accessible to the broader market to allow more innovation through a cloud-based platform,” said Hidetoshi Shibata, CEO of Renesas. “Addition of Altium will enable us to deliver an integrated and open development platform, making it easier for businesses of all sizes and industries to build and scale their systems. We look forward to working with Altium’s talented team as we continue to invest and drive our combined platform to the next level of value for our customers."
"I strongly believe that electronics is the single most critical industry to building a smart and sustainable world. Renesas’s visionary leadership and commitment to making electronics accessible to all resonates strongly with Altium. Altium’s vision of industry transformation finds its fullest expression in service of this grand vision of Renesas,” said Aram Mirkazemi, CEO of Altium. “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.”
Altium’s history began in 1985 from Australia as one of the world’s first printed-circuit board (PCB) design tool providers. The company has grown into a global market leader with the most popular PCB software tool in use today. Its software tools empower and connect PCB designers, part suppliers and manufacturers to develop and manufacture electronics products faster and more efficiently. With the addition of the world’s first digital platform for design and realization of electronics hardware, Altium 365, Altium’s leading PCB design software creates seamless collaboration across the entire PCB design process. In June 2023, Renesas announced that it had standardized development of all PCB design on the Altium 365 cloud-based platform from Altium. Renesas has been working with Altium to publish all its products’ ECAD libraries to the Altium Public Vault. With features such as manufacturer part search on Altium365, customers can choose Renesas parts directly from the Altium library for faster time to market.
The transaction has been unanimously approved by the boards of directors of both companies and is expected to close in the second half of 2024. Completion of the transaction is subject to approval by Altium shareholders, Australian court approval as well as regulatory approvals and other customary closing conditions. The Altium Board unanimously recommends that Altium shareholders vote in favor of the Scheme, in the absence of a superior proposal and subject to the independent expert concluding (and continuing to conclude) that the Scheme is in the best interests of Altium shareholders. Subject to those same qualifications, each Altium director intends to vote, or cause to be voted, all Altium shares held or controlled by them in favour of the Scheme. Altium will continue to be led by CEO Aram Mirkazemi as a wholly-owned subsidiary of Renesas.
Financial Highlights
The acquisition strengthens Renesas’ financial profile and provides shareholders significant value by accelerating Renesas’ Digitalization strategy.
Financial highlights of the transaction include::
- Purchase of all Altium common stock for A$68.50 per share in cash. This represents a premium of approximately 34% to the closing price of Altium common stock on February 14, 2024, the last trading day prior to the transaction announcement, a premium of approximately 39% to Altium's one-month volume-weighted average price (“VWAP”) from January 15, 2024, a premium of approximately 46% to Altium’s three-month VWAP from November 15, 2023 and a premium of approximately 31% to Altium’s all-time high closing price.
- The all-cash transaction represents an equity value of approximately A$9.1 billion (approximately 887.9 billion yen at an exchange rate of 97 yen to the A$), and an enterprise value of approximately A$8.8 billion (approximately 859.3 billion yen at an exchange rate of 97 yen to the A$).
- The transaction is immediately accretive to earnings without synergies; the combined company expects to achieve earnings impact from revenue and cost synergies after the completion of the transaction. Altium brings US$263 million revenue, 36.5% EBITDA margin, and 77% recurring revenue. These metrics are based on Altium’s fiscal year ended June 30, 2023.
- Renesas plans to finance the transaction with bank loans and cash on hand and the transaction is not subject to any financing condition
- Renesas expects to deleverage its Net debt/Non-GAAP EBITDA multiple to <1.0x within 3 years after the completion of the transaction.
Suggested Items
Requirements & Systems Portal Application Now Available on the Altium 365 Cloud Platform
09/13/2024 | AltiumAltium, a global leader in electronics design systems, announced today that it has launched the Requirements & Systems Portal Application into the Altium 365 cloud platform for electronics design collaboration.
Altium, Mouser Team Up to Advance Electronics Education and Careers Worldwide
09/05/2024 | AltiumAltium LLC, a global leader in software and solutions for the electronics industry, and Mouser Electronics, a global authorized distributor of semiconductors and electronic components, are excited to announce a strategic partnership aimed at advancing electronics education and careers worldwide.
Altium 365 Apps Now Available in AWS Marketplace for Collaborative, Secure Design of Electronics Hardware
09/04/2024 | AltiumAltium, a global leader in electronics design systems, announced that its Altium 365 cloud platform and its Secure Collaboration application are now both available in AWS Marketplace, a digital catalog with thousands of software listings from independent software vendors that make it easy to find, test, buy, and deploy software that runs on Amazon Web Services (AWS).
Renesas Announces Subsidiary Changes Following Altium Acquisition
08/26/2024 | RenesasAfter a careful internal review, it was determined that the post-increase capital of both subsidiaries exceeded 10% of Renesas’ capital, classifying them as specified subsidiaries. It was also identified that the required disclosure related to this matter was omitted at the time of the decision-making. Therefore, Renesas hereby reports the capital increase and the changes in specified subsidiaries.
Renesas Completes Acquisition of Altium
08/01/2024 | RenesasRenesas Electronics Corporation, a supplier of advanced semiconductor solutions, and Altium Limited, a global leader in electronics design systems, announced the successful completion of the acquisition of Altium by Renesas. The definitive agreement to acquire Altium was announced on February 15, 2024.