"an independent expert concluding it was in the best interests of shareholders.". Altium is the best EDA software for shareholders you can get.
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.
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?
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Edit: Fixed typo, USD6.9e9 corrected to USD5.9e9.
I do not understand this takeover. With a revenue of USD363M and an "EBITDA margin" of 36.5% you get USD132 M profit. and 6.9e9 / 132.5e6 = 52 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?
More like 44.5 years as it is
5.9e9 / 132.5e6, but I agree with your general observations.
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.
The 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.
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.
That is not a problem at all. Banks do their business and store data on all sort of clouds, the major ones usually.
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.
That is not a problem at all. Banks do their business and store data on all sort of clouds, the major ones usually.
There’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.
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".
Hopefully Renesas have a more innovative plan than simply "let's hike the prices".
They 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.
$1200 a year per user WTF.
Yeh, especially when there are
free options to do something similar!
large organization like automotive would be willing to use a CAD-system that relies on parts of the user data stored "in the cloud".
Do anything for the US government and the mandate is to be on GovCloud.
