On February 15, 2024, Renesas Electronics Corporation (TSE: 6723) and Altium Limited (ASX: ALU) announced they entered into a Scheme Implementation Agreement (SIA) for Renesas to acquire Altium. Under the terms of the deal, Renesas will purchase all outstanding shares of Altium for A$68.50 per share in cash, totaling approximately A$9.1 billion (887.9 billion yen or CAD 8.02 billion) in equity value and A$8.8 billion (859.3 billion yen or CAD 7.75 billion) in enterprise value.

The acquisition aims to merge Altium's cloud-based electronics design capabilities with Renesas' portfolio of embedded solutions, creating an integrated platform for electronics system design and lifecycle management. This platform will enhance collaboration across component, subsystem, and system-level design, addressing the complexities and iterative processes in modern electronics design.

Both Renesas and Altium operate in Canada, providing semiconductor solutions and PCB design tools, respectively, to the Canadian market.

The transaction, approved by the boards of both companies, awaits Altium shareholders' approval and various regulatory clearances. It is expected to close in the second half of 2024. Renesas plans to finance the acquisition through bank loans and cash on hand, with the transaction anticipated to be immediately accretive to earnings.

Deutsche Bank served as exclusive financial advisor to Renesas, with legal counsel from DLA Piper LLP, Covington & Burling LLP, Nagashima Ohno & Tsunematsu, and Stikeman Elliott as Canadian counsel. J.P. Morgan Securities LLC acted as exclusive financial advisor to Altium, with legal counsel from King & Wood Mallesons and Reed Smith LLP.