Chipmaker Renesas Electronics to Buy Altium in $5.9 bn Deal

Japanese chipmaker Renesas Electronics is set to acquire Australian-listed electronics design company Altium for A$9.1 billion ($5.91 billion) in an all-cash transaction. The deal, which positions Renesas to enhance its offerings in electronics design, is set to significantly impact the global semiconductor industry.
Renesas semiconductorRenesas will pay A$68.50 per share, representing a 34 percent premium to Altium’s closing price on Wednesday. The acquisition will be financed through a combination of bank loans and Renesas’ existing cash reserves.

Altium, headquartered in California and listed on the Australian stock exchange, specializes in providing tools for circuit board design. With its acquisition, Renesas aims to streamline the electronics design process for its customers, positioning itself as a leading provider in the semiconductor market.

In the fiscal year ending June, Altium reported sales of $263 million, boasting EBITDA margin of 36.5 percent.

Altium 365, Altium’s leading PCB design software creates collaboration across the PCB design process. In 2023, Renesas standardized development of 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 acquisition marks a significant strategic move for Renesas, allowing it to expand its portfolio and strengthen its position in the global semiconductor market.

This acquisition follows Renesas’ recent announcement of its intent to acquire California-based power semiconductor company Transphorm for $339 million. Renesas is focusing on gallium nitride chips, particularly relevant in electric vehicles, as part of its growth strategy.

Renesas Electronics, formed in 2010 through a merger of NEC’s chip division and Renesas Technology, has been at the forefront of semiconductor innovation. The company’s merger history includes the chip operations of Hitachi and Mitsubishi Electric, cementing its position as a key player in the semiconductor industry.