from AFR
Altium shores up defences as bidder cirlces

Australian software company Altium is in the crosshairs of a strategic buyer.

It is understood the company has drafted in investment bank Goldman Sachs as defence adviser, after receiving a takeover approach at the weekend.

Sources said Altium’s San Diego based CEO Aram Mirkazemi and Australian based chairman Sam Weiss have been in discussions with the bidder for several months.

Altium shares last closed at $27.21, valuing the company’s equity at $3.6 billion.

Altium declined to comment on Monday morning. Its shares are expected to be halted from trading.

It is not known who the bidder is and at what price it is interested. However, it is expected to be a trade player rather than a private equity firm, given Altium’s footprint and trading multiple which is north of 35-times forward EBITDA.

The approach comes after Altium suffered its first period of declining revenue in the six months to December 31, which has seen its shares drop nearly 20 per cent this year.

The company is a high-profile Australian technology sector stock, part of the “WAAAX” stocks bucket and whose valuation rocketed in the past five years.