Software maker Altium rejects $3.9 billion takeover bid from Autodesk

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2021-06-07 11:30:07

Australian-listed software maker Altium (ALU.AX) rejected a $3.9 billion takeover bid from U.S. peer Autodesk Inc (ADSK.O) on Monday as too low, but kept the door open for a higher offer as its shares leapt to near six-month highs.

Autodesk, which makes architecture designing software AutoCAD, offered Altium A$38.50 for each share, a 41% premium to its last closing price, valuing the company at A$5.05 billion ($3.91 billion).

Altium rejected the approach "at the current price" which analysts said valued it at 17 times forecast 2022 sales or 44 times forecast earnings. It added that it would engage with interested parties for an appropriate valuation and pursue a "review of all potential strategic alternatives".

The phrasing "at the current price" potentially alludes to the willingness to complete a deal at a higher price, analysts at brokerage RBC Capital said in a note.

"Autodesk may incrementally increase its offer to gain further engagement from Altium's board," the analysts added.