Renesas Electronics Closes $9 Billion Acquisition of Australia's Altium
Japanese semiconductor company Renesas finalizes its landmark acquisition of Australian EDA software provider Altium, the largest Japanese acquisition of an Australian company on record.
Renesas Finalizes Landmark Altium Acquisition
Japanese semiconductor company Renesas Electronics finalized its acquisition of Altium, the Australian-listed electronic design automation (EDA) software provider, for approximately A$9 billion ($5.9 billion). The deal, which closed in the first half of 2025 after receiving regulatory approvals from authorities in multiple jurisdictions, represents the largest Japanese acquisition of an Australian company on record.
Altium's Product Portfolio and Revenue Base
Altium is best known for its printed circuit board (PCB) design software, which is used by electronics engineers worldwide. The company's flagship product, Altium Designer, and its cloud-based platform, Altium 365, serve a diverse customer base ranging from individual engineers and startups to large multinational corporations. Altium generates approximately $260 million in annual revenue, with strong recurring revenue from software subscriptions and maintenance contracts.
Strategic Rationale: From Hardware to Software
For Renesas, the Altium acquisition addresses a strategic imperative to move beyond hardware and into the software and design tools ecosystem. By integrating Altium's design software with its own semiconductor products, Renesas aims to create a more tightly coupled offering for electronics designers. The vision is to enable engineers to seamlessly move from chip selection and system design through to PCB layout within a unified platform, reducing development time and improving design quality.
Building a Recurring Revenue Stream
The deal also gives Renesas a significant software-based recurring revenue stream, diversifying its business model away from the cyclical dynamics of semiconductor manufacturing. This aligns with a broader industry trend of semiconductor companies acquiring software assets to build more resilient and higher-margin business models.
Regulatory Review and Approval
The transaction faced scrutiny from several competition authorities given Renesas's existing market position in automotive and industrial semiconductors. However, regulators ultimately concluded that the combination posed limited competitive concerns given the distinct nature of EDA software and semiconductor manufacturing.
