Japanese chipmaker Renesas Electronics said on Thursday that it had agreed to acquire Australian-listed electronics design company Altium Limited (ASX:ALU) for A$9.1 billion (US$5.91 billion) in an all-cash deal.
Renesas will pay A$68.50 per share, representing a 34% premium to Altium's closing price on Wednesday. The acquisition will be funded through bank loans and cash reserves.
Altium specialises in providing tools for designing circuit boards, and this acquisition aims to enhance Renesas' capabilities in electronics design for its customers.
Headquartered in California and listed on the ASX, Altium reported sales of US$263 million in the fiscal year ending June, with an EBITDA margin of 36.5%.
Board recommends
The deal has received approval from the boards of directors of both companies but still awaits approval from Altium shareholders, an Australian court, and regulators, according to Renesas.
Altium's board has recommended the deal in the absence of a better offer, contingent upon an independent expert confirming it is in the best interests of shareholders.
This acquisition marks Renesas' latest expansion, following its recent announcement of acquiring California-based power semiconductor company Transphorm for US$339 million, focusing on gallium nitride chips for electric vehicles.
Renesas was established in 2010 through the merger of NEC's chip division and Renesas Technology, which itself emerged from a merger of the chip operations of Hitachi and Mitsubishi Electric.