ASX-listed software maker Altium Ltd has rejected a buyout proposal from American peer Autodesk Inc that valued the company at A$5.05 billion (approximately $3.91 billion), saying it “significantly undervalued” its prospects.
The US firm, which makes architecture designing software AutoCAD, offered Altium A$38.50 for each share, a 41.5% premium to its last closing price.
Altium’s shares soared as much as 40.6% to mark their biggest intraday gain in more than a decade before pulling back to trade 34.7% higher.
The proposal followed talks of a strategic partnership between the two companies, with Autodesk looking to integrate Altium’s electronics designing software with its engineering and manufacturing software platforms to provide its users a host of applications under one cloud network.
San Diego, California-based Altium said it “rejects the proposal at the current price”, adding it would engage with interested parties for an appropriate valuation and pursue a review of all potential strategic alternatives.
Autodesk, which is also based in the US state of California, did not immediately respond to a request for comment on the rejection.
The team at Platform Executive hope you have enjoyed this article. Automatic translation from English to a growing list of languages via Google AI Cloud Translation. Initial reporting via our official content partners at Thomson Reuters. Reporting by Sameer Manekar and Rashmi Ashok in Bengaluru. Editing by Ramakrishnan M. and Sriraj Kalluvila.
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