Electronics design software developer Altium (ASX:ALU)
has turned down a takeover bid from US technology heavyweight Autodesk, claiming the proposal undervalued the ASX-listed firm.
Autodesk is a California-based powerhouse providing digital solutions to architecture, engineering, construction, manufacturing, media, education, and entertainment industries. The NASDAQ-listed tech giant currently has a market capitalisation of US$62 billion.
Autodesk submitted a non-binding, indicative and unsolicited proposal of $38.50 for each Altium share, representing a total consideration of $5.05 billion. The takeover offer originated from bilateral discussions about a strategic partnership between the two parties.
Altium specialises in programming electronics design software that enable electrical devices to integrate into the internet of things (IoT).
The $3.6 billion firm considered the bid to be inadequate and not in the best interests of its shareholders. Therefore, Altium has accordingly rejected the approach from Autodesk, citing backing from investment management firm Goldman Sachs.
Altium failed to meet its revenue objective of $US200 million last year, suffering headwinds from the coronavirus pandemic . The company has also delayed the deadline for its $500 million revenue target by a half to a full year.
Shares in Altium (ASX:ALU)
are trading 34.1 per cent higher at $36.50