Autodesk, Inc (NASDAQ: ADSK) disclosed that it has submitted a non-binding proposal to buy all the outstanding shares of common stock of Altium Limited for AUD 38.50. The non-binding proposal to be employed by way of a scheme of arrangement. The proposed merger would progress the strategy of ADSK to join design and make through an integrated design, engineering, and industrial cloud platform that allow greater efficiency and sustainability for its clients.
Autodesk disclosed that Altium's solutions would be corresponding to its portfolio, creating unique opportunities for clients while offering substantial, and immediate value to the shareholders of Altium. It has been disclosed that the proposal signifies a 41.5% premium over Altium's closing price of AUD 27.21 on June 4, 2021, one business day before the announcement by Altium of Autodesk's proposal.
Additionally, it also represents a premium of more than 47.4% to the one-month volume-weighted average price. Autodesk is planning to back the deal using cash on hand and debt financing. Altium has gained recognition as a global software firm based in San Diego, California. It is publicly traded on the Australian Securities Exchange.
Furthermore, the proposal is suggestive, non-binding, and is dependent on several provisions including, but not restricted to, satisfactory fulfillment of due diligence. It is dependent on the unanimous suggestion in favor of the deal by the Altium board. It also includes a deal between Autodesk and Altium and the completion of a scheme implementation agreement combining expected terms and conditions for a transaction of this nature.
Other conditions include Altium shareholder and court authorization, proof of payment of all relevant regulatory authorizations, and no material adverse change to Altium. There is no assurance that any deal will ultimately be approved to or as to the terms on which such a deal if any, might occur. Autodesk does not plan to make any additional comments on this matter unless and until it is confident it is suitable to do so, or a decisive deal has been reached.