Architecture, engineering, and construction (AEC) software company Autodesk announced that it would bid to acquire electronic design software developer Altium. CNBC noted that it offered AUD 38.50 per share, which totals USD 3.9 billion.
The takeover bid would lead to a strategic partnership between two giants in the tech industry. However, Altium’s board of directors rejected the proposal at the current price. The company is one of the five heavyweight technology stocks on the ASX, and they are keeping their doors open for higher offers.
What is the Significance of Altium and Autodesk in the Tech Industry?
It’s not surprising that companies are showing interest in acquiring Altium. The company began in 1985 as one of the world’s first printed circuit board (PCB) design tool providers, which all electronics use. Since then, they have expanded their markets to the Americas, Europe, and the Asia Pacific. Reuters notes that they are also providing software and electrical engineer tools to leading tech names like Apple, Facebook, Tesla, BMW, Intel, and Samsung.
Altium’s flagship product is Altium Designer, which helps engineers create 3D PCBs through a single user interface. This helps leading tech companies to produce concepts, designs, and models at a faster rate. Their most recent product, Altium 365, is the world’s only cloud platform that unites PCB design, data management, and teamwork communication. Due to the rise of remote jobs, this tool is increasingly important for companies because users can collaborate and design electronic products wherever they may be. Designers can view and share projects through their devices’ browsers, so downloads and installations will not be necessary. Most importantly, it is hosted on Amazon Web Services, which promises accessibility and security for its consumers.
Autodesk is a multinational software corporation that also offers a wide variety of software programs in construction, product design, media, and workflows. Acquiring Altium is definitely a large purchase since Autodesk’s market cap is currently around USD 61.5 billion, but they see a lot of potential in the partnership. Altium’s products fit perfectly into their services, which is why Autodesk can see the potential in integrating the former’s design software with their own engineering and manufacturing software platforms. The PCB design tools would make a great addition to Autodesk’s Fusion 360 platform, which is also a cloud-based solution. This would allow their consumers to create design and manufacture products as a whole, down to their PCBs.
Altium Rejects Offer: Says It Undervalues Prospects
Though the partnership is promising, the board of directors at Altium highlights that the proposal undervalues their prospects. According to eeNews Europe, the board believes that Altium has a unique position in the electronics industry. The company will continue to review potential strategic alternatives that would be a better fit.
After all, Altium believes that they can overcome economic slowdowns and reach better growth in the coming years. The company has expanded beyond producing excellent PCB design tools and ventured into cloud and system design. They consider these new software platforms as the key for their growth towards 2025. It already looks promising, considering their revenue in the second quarter of 2021 was greater than the first quarter.
Altium continues to become one of the pioneers in the tech industry. This proposal from Autodesk highlights the company’s role in creating software programs and tech products that people love and trust. For more Tech News, check out our other articles.