Japanese semiconductor maker Renesas Electronics Corp. agreed to acquire design software firm Altium Ltd. for A$9.1 billion (US$5.9 billion).

Renesas will acquire shares of Altium, which is listed in Sydney but headquartered in San Diego, for a cash price of A$68.50 each, the Tokyo-based company said in a statement Thursday. The deal, to be financed by bank loans and cash, represents a 33.6% premium to Altium’s closing price on Wednesday, according to Bloomberg calculations.

Renesas is a major supplier of automotive and power semiconductors with close ties to Toyota, Nissan Motor Co. and Honda Motor Co. The firm has been expanding its portfolio of embedded processors, with an aim to becoming a global leader in the space, it said in the statement.

Renesas Agrees to Buy Altium at 34% Premium: M&A Snapshot

“As technology advances, the design and integration of electronic systems is becoming increasingly complex,” the statement said. “Renesas and Altium, under a shared vision, aim to build an integrated and open electronics system design and life cycle management platform.”

Shares in Altium, whose software is used by the likes of Bang & Olufsen and Leica Geosystems AG to design printed circuit boards for devices, have soared more than 36% since rejecting a nearly $4 billion takeover offer from Canadian company Autodesk in July 2021. Altium rejected the bid as too low given the company’s growth prospects, particularly since its transition to cloud software.

“I strongly believe that electronics is the single most critical industry to building a smart and sustainable world,” Altium CEO Aram Mirkazemi said in the statement. “Renesas’ visionary leadership and commitment to making electronics accessible to all resonates strongly with Altium.”

Altium is being advised by JPMorgan Chase & Co., with King & Wood Mallesons and Reed Smith LLP as legal advisers.

  - Bloomberg