Shares in ASX-listed software venture Altium (ASX: ALU) jumped 40% after the company rejected an unsolicited $5 billion takeover offer from NASDAQ-listed multinational software behemoth Autodesk.
The non-binding, indicative and unsolicited offer from for 100% of Altium at A$38.50 per share, by way of a scheme of arrangement, was rejected as “significantly” undervaluing the business, which has seen its share price slide from a 12-month high of $40.21 last October, to a low of $23.66 last month.
Altium’s share price closed on Friday at $27.21 having come under pressure this year amid declining sales figures. The shares closed $37.83, up 39%, on Monday following a delayed start to trade ahead of the Board’s response.
Autodesk, with a market cap of $80 billion, is one of the world’s biggest CAD/CAM software companies, servicing sectors such as architecture, engineering, construction, manufacturing, media, education, and entertainment.
“Altium has a unique position in the electronics ecosystem and in the past unsolicited acquisition interest has developed from partnership dialogues with others in the ecosystem,” the company’s Board said in a statement to the ASX.
“As consistent with past unsolicited acquisition interest, the Altium Board will engage with interested parties in the context of an appropriate valuation of Altium and it will continue to review all potential strategic alternatives for the company.”
The business has engaged Goldman Sachs as financial adviser and King & Wood Mallesons for legal advice.
The Board said it had confidence in the company’s ability “to pursue its transformative strategy for the electronics industry and to achieve its 2025 financial goals” after pivoting to the cloud.
Altium is also a global software company with its HQ in San Diego. It produces software used by printed circuit board (PCB) designers and electrical engineers.
In a statement to the NASDAQ, Autodesk said it “believes Altium’s solutions would be complementary to its portfolio, creating unique opportunities for customers while delivering significant, certain and immediate value to Altium’s shareholders”.
The proposal, which was subject to a number of conditions, represented a premium of over 47.4% to the one-month volume-weighted average price. Autodesk intended to finance the transaction using cash on hand and debt financing.