Altium had previously rejected a $3.9 billion acquisition offer from software company Autodesk in 2021, citing the price as too low.
Renowned Japanese electronics company Renesas Electronics has completed the acquisition of Altium, an Australian design tool developer. The deal, valued at AUD 9.1 billion (USD 5.9 billion), was first announced in February of this year and will add Altium's expertise in electronic system design and lifecycle management to Renesas Electronics' development tools. This will integrate and standardize various electronic design data and functionalities, and enhance component lifecycle management through digital iterations of the design process, thereby improving overall productivity.
Altium had rejected a $4 billion acquisition offer from Autodesk in 2021, and subsequently reached a strategic agreement with Renesas Electronics in June 2023.
Renesas Electronics CEO Hidetoshi Shibata stated: "This is a historic milestone for both Renesas Electronics and Altium, as we take another significant step towards enhancing the user experience for electronic system designers."
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"We aim to jointly build an integrated and open electronic system design and lifecycle management platform that will enable electronic products to reach a broader market, suitable for any enterprise of any size or industry. We are committed to maintaining the data security and compliance of Altium's customers, which will continue to be our top priority. With the addition of Altium's design software and cloud platform capabilities, we are excited to change the future of electronic system design together with Aram Mirkazemi and his industry-leading, talented software engineering team."
Altium is now a wholly-owned subsidiary of Renesas Electronics, with Aram Mirkazemi continuing to serve as Altium CEO, as well as Senior Vice President and Head of Software and Digitalization at Renesas Electronics.
The acquisition of Altium by Renesas Electronics was completed through a scheme of arrangement under Australian law. Under the terms of the plan, Renesas Electronics' indirect wholly-owned subsidiary, Renesas Electronics NSW Pty Ltd, acquired all of Altium's issued and outstanding shares at a cash price of AUD 68.50 per share, with a total equity value of approximately AUD 9.1 billion. Renesas Electronics financed the acquisition through bank loans. As part of the implementation of the plan, Altium's common shares were suspended from trading on the Australian Securities Exchange at the close of trading on July 19, 2024, and Altium was officially delisted from the Australian Securities Exchange at the close of trading on August 2, 2024.The history of Altium began in Australia in 1985 and is a global software company headquartered in San Diego, California. The company is accelerating innovation through electronic products. For over 30 years, Altium has been providing software that maximizes the efficiency of PCB designers and electrical engineers.
Renesas' sales in the second quarter of 2024 (April to June 2024) were 358.8 billion yen, a year-on-year decrease of 2.7%; operating income was 110.6 billion yen, a year-on-year decrease of 14.3%; and the net profit for the quarter was 96.7 billion yen, a year-on-year decrease of 18.7%. Compared to the previous quarter (the first quarter), sales increased by 2.0%, but operating income and net profit were lower. The operating profit margin was 30.8%, which has deteriorated compared to the same period last year and the previous quarter.
Looking at the sales from each business segment, the automotive business grew by 18.2% year-on-year and by 6.9% quarter-on-quarter, reaching 190.4 billion yen; while the industrial/infrastructure/Internet of Things (IoT) business decreased to 166.2 billion yen, a year-on-year decrease of 18.9% and a quarter-on-quarter decrease of 3.1%.
The CEO of Renesas stated that the outlook for the automotive industry has become cautious. The demand adjustment in the industrial application field takes longer and is larger. Previously, Renesas assumed that it would hit the bottom of growth in the second quarter, but now it seems that it will hit the bottom in the third quarter. Renesas expects that demand will gradually recover from the fourth quarter.
The Mayor of Shanghai, Gong Zheng, met with the CEO of Renesas Electronics from Japan.
In July of this year, Gong Zheng, the Mayor of Shanghai, met with Hidetoshi Shibata, a director, representative executive president, and CEO of Renesas Electronics from Japan.
Gong Zheng said that as the forefront of China's opening up and the largest economic center city, Shanghai always adheres to the policy of utilizing foreign capital, the protection of the legitimate rights and interests of foreign-invested enterprises, and the direction of providing better services for enterprises from various countries to invest and start businesses in Shanghai. As always, Shanghai is committed to creating a first-class business environment that is market-oriented, rule-of-law-based, and international, helping various enterprises to develop their businesses in Shanghai. Integrated circuits are one of the three leading industries that Shanghai focuses on developing, and it is hoped that Renesas Electronics will place more high-end functions, high-quality resources, cutting-edge projects, and business units in Shanghai, while deepening industry-academia-research cooperation with local enterprises and research institutes to cultivate more integrated circuit talents.
Hidetoshi Shibata said that the company regards Shanghai as an important strategic base in its global layout, has established the China headquarters and design company, sales company, and bonded warehouse here, and will further increase investment in the future. He hopes to carry out more extensive cooperation with the Shanghai government and enterprises in the field of semiconductors, jointly promote the progress and popularization of semiconductor technology, better apply it to various industries, and accelerate the digital transformation.
Renesas Electronics is a semiconductor multinational company headquartered in Tokyo, leading in the fields of microcontrollers and analog power devices, with a revenue of over 3.6 billion yuan in Shanghai in 2023.
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