Japan chipmaker Renesas to buy software company Altium for $5.9 billion - Page 1
Forum section: electronics / general

author: johnboxall
author_rank: Unknown
timestamp: February 15, 2024, 03:07:11 am
content: Quotehttps://www.japantimes.co.jp/business/2024/02/15/companies/renesas-buys-altium/

author: Analog
author_rank: Contributor
timestamp: February 15, 2024, 03:29:00 am
content: "an independent expert concluding it was in the best interests of shareholders.". Altium is the best EDA software for shareholders you can get.

author: twospoons
author_rank: Frequent Contributor
timestamp: February 15, 2024, 03:41:27 am
content: Quote from: Analog on February 15, 2024, 03:29:00 am

author: Shonky
author_rank: Frequent Contributor
timestamp: February 15, 2024, 05:02:55 am
content: https://www.eevblog.com/forum/chat/renesas-to-buy-altium

author: Uky
author_rank: Regular Contributor
timestamp: February 15, 2024, 08:58:55 am
content: Regardless of which CAD system used, be it Altium, Mentor, Cadence etc. I cannot see that any large organization like automotive would be willing to use a CAD-system that relies on parts of the user data stored "in the cloud". Given the fact that hackers have been able to penetrate even the Pentagon, imagine the consequences of a security breach where data is spread or destroyed at any given time. In my opinion, the use of a CAD-system has to be able to be maintained internal to an organization without any data transfer to an outside service. Be it license servers, data storage or anything else.

author: Doctorandus_P
author_rank: Super Contributor
timestamp: February 16, 2024, 03:43:10 am
content: I do not understand this takeover. With a revenue of USD363M and an "EBITDA margin" of 36.5% you get USD132 M profit. and 5.9e9 / 132.5e6 = 44.5 years to get their money back. And that is without (compound) interest. Or if I turn those 52 years around, the investors get 2% of interest over their investment.Altium did grow lately, From some USD100M to USD150M of revenue just a few short years ago. The only way I can see this make sense for the investors, is if they expect this trend to continue, so they can get a lot more money out of it then the current numbers suggest.Can someone with more knowledge of economics explain why these numbers would even make sense?---------------------Edit: Fixed typo, USD6.9e9 corrected to USD5.9e9.

author: Kean
author_rank: Unknown
timestamp: February 16, 2024, 03:53:03 am
content: Quote from: Doctorandus_P on February 16, 2024, 03:43:10 amMore like 44.5 years as it is5.9e9 / 132.5e6, but I agree with your general observations.

author: thm_w
author_rank: Super Contributor
timestamp: February 16, 2024, 09:46:04 pm
content: Quote from: Doctorandus_P on February 16, 2024, 03:43:10 amThe numbers never have to make sense. Companies get bought all of the time that are losing money on their balance sheets.Obviously the expectation here is that they would either grow the company, cut costs, integrate the tech, etc.https://www.mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/the-six-types-of-successful-acquisitions

author: Veteran68
author_rank: Frequent Contributor
timestamp: February 16, 2024, 09:53:29 pm
content: Quote from: Uky on February 15, 2024, 08:58:55 amThe vast majority of large corporations these days operate almost entirely out of the cloud. The cloud is actually more secure than managing your own infrastructure.There are many legitimate reasons to question cloud hosting, but this idea of the cloud being more vulnerable is simply false.

author: Bud
author_rank: Super Contributor
timestamp: February 16, 2024, 09:53:45 pm
content: Quote from: Uky on February 15, 2024, 08:58:55 amThat is not a problem at all. Banks do their business and store data on all sort of clouds, the major ones usually.

author: mikehoopes
author_rank: Newbie
timestamp: February 18, 2024, 01:05:41 am
content: Quote from: Bud on February 16, 2024, 09:53:45 pmThere’s an Enterprise option to use AWS GovCloud or internal hosting, but I don’t know what CMMC level their GovCloud is currently at; it wasn’t 2 a year ago, but that may have changed.

author: voltsandjolts
author_rank: Unknown
timestamp: February 20, 2024, 10:28:09 am
content: Yeh, crazy money to pay for Altium. But these days companies seem to be valued more by number of users, and how much money the buyer thinks can be extracted from them. Hopefully Renesas have a more innovative plan than simply "let's hike the prices".

author: Psi
author_rank: Super Contributor
timestamp: February 20, 2024, 11:26:49 am
content: Quote from: voltsandjolts on February 20, 2024, 10:28:09 amThey must do, no one in their right mind would think Altium is underpriced and think a price increase would increase profit.Did you see that they want to charge $1200 per user per year for the Altium365 online assembly tool when it goes out of beta phase in a few months.It's a nice little online feature/tool that make it easy to populate a PCB by hand by providing a nice list of parts you can step through and flag as done. It shows you where each part is in the PCB 3D view including clear pin 1 locations etc.. It's actually a nice tool for manually populating a PCB, but WOW, not $1200 a year per user WTF.

author: voltsandjolts
author_rank: Unknown
timestamp: February 20, 2024, 11:57:27 am
content: Quote from: Psi on February 20, 2024, 11:26:49 amYeh, especially when there arefree optionsto do something similar!

author: Jeroen3
author_rank: Super Contributor
timestamp: February 20, 2024, 12:24:51 pm
content: So a bit likeVisualPlace, which is $0?

author: free_electron
author_rank: Super Contributor
timestamp: March 01, 2024, 03:20:05 am
content: Quote from: Uky on February 15, 2024, 08:58:55 amDo anything for the US government and the mandate is to be on GovCloud.

author: ajawamnet
author_rank: Regular Contributor
timestamp: June 01, 2024, 06:38:37 pm
content: Quote from: free_electron on March 01, 2024, 03:20:05 amUh... no. We can't. Not at all. Ever. In fact, most of out engineering stations are on networks with no access to the internet/cloud.https://federalnewsnetwork.com/cybersecurity/2024/01/dods-new-memo-puts-stricter-requirements-on-cloud-providers/