News & Analysis

Renesas to acquire PCB design software leader Altium

15th February 2024
Paige West

Renesas Electronics Corporation and Altium Limited have entered into a Scheme Implementation Agreement (‘SIA’) for Renesas to acquire Altium through a Scheme of Arrangement under Australian law (‘Scheme’).

According to the agreement, Renesas will purchase all outstanding shares of Altium for A$68.50 per share, totalling an equity value of approximately A$9.1 billion (about 887.9 billion yen at an exchange rate of 97 yen to the A$) and an enterprise value of A$8.8 billion (about 859.3 billion yen). This acquisition marks a significant step in uniting two industry leaders to create an integrated and open electronics system design and lifecycle management platform, facilitating collaboration across various design levels. This move aligns with Renesas' digitalisation strategy, enhancing the user experience and innovation at the system level for electronics system designers.

The complexity of designing and integrating electronic systems is escalating as technology advances. The current process involves numerous stakeholders and iterative steps, from component selection to PCB physical design, requiring engineers to design systems that are functional, efficient, and cost-effective within shorter development cycles.

Renesas and Altium share a vision to establish a unified platform for electronics system design and lifecycle management, integrating Altium’s Cloud capabilities with Renesas’ portfolio of embedded solutions. This platform aims to streamline the electronic design process by enabling seamless integration with third-party vendors and standardising various design data and functions. It is expected to enhance component lifecycle management, reduce development inefficiencies, and foster faster innovation.

“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.”

Since its inception in 1985 in Australia, Altium has grown into a global leader in PCB design software, facilitating efficient development and manufacturing of electronics products. In June 2023, Renesas standardised its PCB design development on Altium 365, Altium’s Cloud-based platform, and has collaborated with Altium to publish its products' ECAD libraries to the Altium Public Vault.

The boards of directors of both companies have unanimously approved the transaction, expected to close in the second half of 2024, subject to Altium shareholder approval, Australian court approval, regulatory approvals, and other customary closing conditions. The Altium Board unanimously recommends that its shareholders vote in favour of the Scheme, contingent upon the independent expert's assessment that the Scheme is in the best interests of Altium shareholders. Subject to these conditions, each Altium director intends to vote all shares they hold or control in favour of the Scheme. Following the acquisition, Altium will operate as a wholly-owned subsidiary of Renesas, led by CEO Aram Mirkazemi.

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