By Stuart Condie


SYDNEY--Altium shares surged to a record high after the Australia-listed provider of design software agreed to a US$5.91 billion takeover by Japanese chipmaker Renesas Electronics.

The stock jumped more than 30% shortly after Thursday's market open after Altium said it had entered into a binding agreement with Renesas on a cash proposal worth 68.50 Australian dollars (US$44.46) a share.

Altium shares hit A$67.00 in early trade and were recently at A$66.58, up from A$51.26 at Wednesday's close. Altium expects the deal to close in the second half of 2024, subject to approval by shareholders and regulators.

"Given unanimous support from the board, as well as the large premium to prior close, we would expect the transaction to be supported and go through," E&P Capital analyst Paul Mason told clients in a note.

Renesas's proposal came almost three years after Altium, which specializes in printed circuit board design and operates a parts search engine, rejected an approach from Nasdaq-listed Autodesk.

Altium said that Autodesk's A$38.50-a-share proposal significantly undervalued its prospects, and analysts agreed that the approach was opportunistic. Altium's shares have almost doubled in value since then.

Altium said that Chief Executive Aram Mirkazemi would continue to lead the business as a subsidiary of Renesas.

"I strongly believe that electronics is the single most critical industry to building a smart and sustainable world. Renesas's visionary leadership and commitment to making electronics accessible to all resonates strongly with Altium," Mirkazemi said.


Write to Stuart Condie at stuart.condie@wsj.com


(END) Dow Jones Newswires

02-14-24 1939ET