Altium Will Continue to Engage With Suitor Autodesk After Takeover Rejection --Update
By Stuart Condie
SYDNEY--Altium Ltd. Chairman Sam Weiss said the Australian
software firm will continue to engage with Autodesk Inc. after
rejecting its takeover proposal on valuation grounds.
Mr. Weiss told an investor call on Friday that the board of
Altium would continue to speak with Autodesk President and Chief
Executive Andrew Anagnost.
Altium this month rejected Nasdaq-listed Autodesk's unsolicited
proposal, which valued Altium's equity at about US$3.91 billion and
was described by analysts as opportunistic.
"As a public company, we are always mindful of shareholder value
and we have no preconceived opposition to an acquisition," Mr.
Weiss said. "However, we believe it should be at the point and at a
price that reflects the unique value of Altium as a company and its
demonstrated and future wealth creation potential."
Mr. Weiss said Altium recognized the multiples implied by
Autodesk's proposal were high by industry standards, but insisted
the offer of 38.50 Australian dollars (US$29.08) per share did not
reflect the underlying value of the electronics design software
"We believe that Autodesk also recognizes the future value of
the Altium software and platform and that their offer to acquire
the company is in some part a reflection of their own conviction of
the value they can extract," Mr. Weiss said.
Lingering worries over the impact of Covid lockdowns on industry
have prevented Altium shares from recouping all the losses
sustained when the pandemic roiled global markets. Yet some
analysts recently expressed optimism that Altium can benefit from
rebounding global economic growth.
The stock hit a six-month high of A$38.26 on June 7 after
Autodesk's proposal was announced. It was up 2.2% at A$35.27 on
Friday despite Chief Financial Officer Martin Ive acknowledging
that Altium's fiscal 2021 revenue may narrowly fall short of its
US$190 million-US$195 million guidance.
Chief Executive Aram Mirkazemi reiterated Altium's commitment to
its targets of US$500 million revenue and 100,000 subscribers by
Write to Stuart Condie at email@example.com
(END) Dow Jones Newswires
June 17, 2021 20:53 ET (00:53 GMT)
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