Benzinga | Jun 7, 2021 07:55AM EDT

Altium Snubs Autodesk's $3.9B Acquisition Proposal: Reuters

* Altium Ltd (OTC:ALMFF) has refused Autodesk Inc's (NASDAQ:ADSK) $3.9 billion acquisition offer citing it as undervalued, Reuters reports.

* Altium develops software for printed circuit board (PCB) designers and electrical engineers to deliver connected, intelligent products.

* The present offer valued Altium at 17x forecasted 2022 sales or 44x forecasted earnings, analysts estimated. Autodesk was ready to renegotiate with Altium, whose customers ranging from Apple Inc (NASDAQ:AAPL), Facebook Inc (NASDAQ:FB), Tesla Inc (NASDAQ:TSLA), Bayerische Motoren Werke AG (OTC:BMWYY), Intel Corp (NASDAQ:INTC) and Samsung Electronics Co Ltd (OTC:SSNLF).

* Jefferies analysts estimate a higher bid from Autodesk. They also expect potential bidders like France's Dassault Systemes SE (OTC:DASTF) and PTC Inc (NASDAQ:PTC).

* Altium shares, which had been trading close to its post-pandemic low of $23.11 in May, rose 40.6% on Monday following the offer.

* Earlier today, Autodesk Inc (NASDAQ: ADSK) confirmed a non-binding proposal to acquire software company Altium Ltd (OTC: ALMFF) for A$38.50.

* The proposal signified a 41.5% premium over Altium's June 4 closing price of AUD$27.21.

* Autodesk planned to finance the transaction using cash and debt.

* Autodesk held 923.2 million in cash and equivalents as of April 30, 2021.

* Price action: ADSK shares closed higher by 3.76% at $284.78 on Friday.