Renesas to Buy PCB Design Software Leader Altium

Renesas Electronics Corp., a supplier of advanced semiconductor solutions, and Altium Limited, a global leader in electronics design systems,have entered into a Scheme Implementation Agreement 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 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, Renesas reports.

Together, Renesas and Altium, under a shared vision, aim to build an integrated and open electronics system design and lifecycle management platform that unifies steps at a system level. The acquisition brings together Altium’s cloud platform capabilities with Renesas’ 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 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 digital iteration of design processes to increase productivity. 

“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,” says 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.”

“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,” says 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 a printed-circuit board (PCB) design tool provider. The company has grown into a global market leader with its PCB software tool. Its software tools empower and connect PCB designers, part suppliers and manufacturers to develop and manufacture electronics products faster and more efficiently, the company reports. It also has a digital platform for design and realization of electronics hardware, Altium 365, Altium’s PCB design software.

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. 

Sources: Press materials received from the company and additional information gleaned from the company’s website.

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