Altium Shares soared on Monday as the California-based software developer announced it had rejected a takeover offer by Nasdaq-listed giant, Autodesk. Altium, which focuses on electronics design systems for 3D PCB design and embedded system development, saw its market cap jump to just under AU$5 billion on the news which confirmed that Autodesk had submitted a formal, non-binding, indicative offer to acquire all of Altium’s shares at A$38.50 per share
Autodesk is an American multinational software corporation that makes software products and services for the architecture, engineering, construction, manufacturing, media, education, and entertainment industries with a market capitalisation of US$62 billion.
While the Altium Board noted that it appreciates the interest expressed by Autodesk, which has evolved from a dialogue about a strategic partnership, it considered that the proposal significantly undervalues Altium’s prospects and therefore rejected the proposal at the current price.
Altium believes it has a unique position in the electronics ecosystem, and as a result, has previously received acquisition interest following partnership dialogues with others in the ecosystem. The Altium Board says it will continue to engage with interested parties in the context of an appropriate valuation of Altium, reviewing all potential strategic alternatives for the company.
Altium’s strong track record of setting ambitious long-term goals and achieving them, gives the company confidence to pursue its transformative strategy for the electronics industry and to achieve its 2025 financial goals. Having successfully pivoted to the cloud, Altium believes is now well-positioned to pursue market dominance and industry transformation. The adoption of Altium’s cloud platform is transforming Altium’s business model from maintenance-based subscription to capability-based SaaS subscription.