Engineers and designers who are working on circuit boards will be provided with innovative digital tools through this acquisition of Renesas
The US based global software company Altium is highly expected to be wholly acquired by the Japanese semiconductor firm Renesas Electronics at an investment of $5.9 billion, according to Reuters. The purpose of the acquisition is to streamline the electronics design process and to provide digital device design to the clients. This deal has put Renesas at the vanguard in the country’s chip industry in terms of investments.
The government of Japan has been undertaking various initiatives similar to the other countries to enhance the semiconductor supply chain ecosystem amid the ongoing geopolitical scuffles. Through this dealmaking, Renesas is looking forward to offering design of the devices to its customers such as Nissan and Toyota. Engineers and designers who are working on circuit boards will be provided with innovative digital tools through this acquisition of Renesas.
According to an exclusive report of CNBC, Renesas said it would pay AU$68.50 per share, representing a 33.6% premium to Altium’s closing price of AU$51.26 on Wednesday. The listed share prices of Altium in Australia soared AU$66, which is around 30 percent, Renesas Tokyo shares plummeted by 3.2 percent. In a media conference, Renesas CEO Hidetoshi Shibata said, "As long as we remain a traditional device manufacturer we will only be marginalized."
Altium is listed in Australia and headquartered in the US. It recorded a total sales of $263 million in the year ended June with the earnings before depreciation, interest, tax, and a amortization margin of 36.5 percent. The management of both the companies have confirmed the deal, but approvals are required from Altium's shareholders.
Speaking of investments and mergers, Japan is the key country in Asia that witnessed a lot of purchases and deals in 2023 at an escalated rate of 71 percent and in 2018, the deals worth at $178 billion. The point to be noted is that back 2010, Renesas was formed via a merger of NEC’s chip section and Renesas Technology, which was further formed through a deal of chip operations of Mitsubishi Electric and Hitachi.
