A few days ago, Renesas Electronics officially released the news: Renesas Electronics announced the acquisition of PCB design software Altium.

Under the terms of the transaction, subject to the fulfilment of a number of conditions, Renesas Electronics will acquire all of Altium's ordinary shares for A$68.50 per share in cash. This represents a premium of approximately 34% to the closing price of Altium's common shares on 14 February 2024 (the last trading day prior to the announcement of the transaction), a premium of approximately 39% to the one-month volume-weighted average price of Altium from 15 January 2024, a premium of approximately 46% to the three-month volume-weighted average price of Altium from 15 November 2023, and a premium to the Altium's all-time high closing price premium of approximately 31%.

The all-cash transaction has an equity value of approximately A$9.1 billion (approximately ¥887.9 billion at the ¥97 to A$ exchange rate; approximately $42.7 billion when converted to RMB) and an enterprise value of approximately A$8.8 billion (approximately ¥859.3 billion at the ¥97 to A$ exchange rate).

The transaction is immediately accretive to earnings in the absence of synergies; the combined company is expected to realise the earnings impact of revenue and cost synergies upon completion of the transaction.Altium generated $263 million in revenue, 36.5% EBITDA margin and 77% recurring revenue.

These metrics are based on Altium's financial year ending 30 June 2023. Renesas Electronics plans to finance the transaction with bank loans and cash on hand, and the transaction is not subject to any financing conditions.

The acquisition of Altium by Renesas Electronics, with the addition of Altium's design software and cloud platform capabilities, enables Renesas to create a system-level integrated and open platform for electronic system design and lifecycle management that supports Renesas Electronics' digitalisation strategy.

*Disclaimer: The news in this article originated from strongerHuang, 21ic electronic network, by the YuanXinAi electronic collation, the news has not been officially confirmed, only for the purpose of communication and learning.