Altium shares rocket on $9.1b takeover deal

This tech stock looks set to leave the ASX boards after accepting a takeover offer.

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Altium Ltd (ASX: ALU) shares are rocketing on Thursday morning.

At the time of writing, the electronic design software company's shares are up 31% to $67.00.

Why are Altium shares rocketing?

Investors have been scrambling to buy the company's shares this morning after it accepted a takeover offer from Japan's Renesas Electronics Corporation.

According to the release, the two parties have entered into a scheme implementation agreement that will see Renesas acquire Altium by way of a scheme of arrangement for a cash price of $68.50 per share.

This represents a 33.6% premium to its last close price and values Altium's equity at $9.1 billion.

The release notes that the acquisition enables two industry leaders to join forces and establish an integrated and open electronics system design and lifecycle management platform that allows for collaboration across component, subsystem, and system-level design.

Altium will continue to be led by CEO Aram Mirkazemi as a wholly-owned subsidiary of Renesas.

Unanimously recommended

The transaction has been unanimously approved by the boards of directors of both companies. If all goes to plan, it is expected to close in the second half of 2024.

Completion is subject to approval by Altium shareholders, Australian court approval, as well as regulatory approvals and other customary closing conditions.

The Altium board unanimously recommends that Altium shareholders vote in favuor of the scheme, in the absence of a superior proposal and subject to the independent expert report.

Subject to those same qualifications, each Altium director intends to vote all shares held or controlled by them in favour of the scheme.

Motley Fool contributor James Mickleboro has positions in Altium. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Altium. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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