Renesas Electronics recently announced plans to acquire a 100% stake in PCB design software company Altium for AUD 9.1 billion (approximately USD 5.9 billion), which is reminiscent of Siemens' acquisition of EDA company Mentor Graphics in March 2017.
Many engineering friends have been using Altium software since their college years. This Australian multinational software company, which has a leading position in the field of electronic design automation (EDA), focuses on 3D PCB design, electronic design, and embedded system development. The company was founded by Nick Martin in Hobart, Tasmania, Australia in 1985. Originally named Protel International Limited, it is dedicated to developing PC based software and providing auxiliary design for printed circuit boards. In August 1999, Altium successfully went public on the Australian stock market, raising funds to acquire other companies and technologies in January 2000, including ACCESS Technologies, Metamor, Innovative CAD Software, and TASKING BV. These acquisitions further enhance Altium's strength in the field of electronic design automation.
Renesas Electronics' mainstream business is to provide digital and mixed signal chips for automotive and industrial applications. This transaction will be aligned with its own digital strategy and is an important first step in providing products and services at the system level. The company added that system design has become so complex that it must consider multiple aspects such as electronics, mechanics, and heat in order to achieve successful design in a short period of time.
Renesas stated that the acquisition has received unanimous agreement from the boards of directors of both companies, which will enable them to accelerate growth by creating system level integration, open electronic system design, and lifecycle management platforms. The transaction is expected to be completed in the second half of 2024.
Altium provides a design cloud platform integrated with Renesas chips. Renesas stated that this merger will also achieve integration with third-party suppliers throughout the entire ecosystem.
Hidetoshi Shibata, CEO of Renesas Electronics, stated that the purpose of this acquisition is to enable electronic design to enter a wider market and achieve more innovation through cloud based platforms.
Altium CEO Aram Mirkazemi stated that the company has been partnering with Renesas Electronics for nearly two years. Renesas Electronics selects Altium as the unified PCB development tool
As of June 30, 2023, Altium's annual revenue was $263 million. The completion of the transaction still requires approval from Altium shareholders, Australian courts, regulatory authorities, and other customary transaction conditions. Altium, as a wholly-owned subsidiary of Renesas Electronics, will continue to be led by CEO Aram Mirkazemi
