SAN FRANCISCO—Design software vendor Altium Ltd. said Thursday (Sept. 16) it intends to acquire Morfik Technology, an Australian provider of software tools and subscriptions for building web-based applications, in a stock deal worth about $3.3 million.
Altium(Sydney) said Morfik's software engineering approach to web-application development makes it suitable for building web-based systems for domains such as electronics design, which involve large amounts of complex, dynamic content. Altium said it has has been using Morfik's technology and development tools for a number of years as key elements in the development of its own web-based infrastructure for the electronics design process.
"Altium's task is to create the design solution that lets any electronics designer do this, and provide the methodologies, tools, infrastructure and services needed to do so," said Nick Martin, Altium's CEO, in a statement. "We believe that cloud-based software applications, engineered to harness the power of Internet-enabled intelligent devices, are a vital part of this future. Therefore, this acquisition provides a powerful step forward for Altium in this area."
Altium said it would continue to support Morfik's existing business model, providing software used to design, engineer and deploy cloud-based software applications.
Altium would issue 13.3 million fully paid ordinary shares, representing between 14 and 15 percent of all its outstanding shares, for 100 percent of Morfik's outstanding shares. Altium's stock price closed at 25 cents on the Australian stock market Thursday, which would value the transaction at about $3.3 million.
All members of Morfik's team will join Altium, and Altium will acquire all Morfik's IP and other assets, Altium said.
Cloud computing-based electronic design tools have to be proven to provide the security designers feel comfortable with. In the chip space Cadence and others have tipped their toes in cloud computing and have found security to be lacking. Altium being in the system design space might have found a comfortable business model working with Mortif and feel confident to take the necessary next step in using cloud computing for design.
Not exactly. There are two components to the Mortif acquisition. First, Altium is using the cloud today for on-demand licensing. Mortif will expand the cloud usage to include new content availble to Altium users that can be pulled from the cloud. The second component enables our users to build cloud based ecosystems for connected devices. Connected device design is the future.
Cloud computing for electronics product development suite is really a very helpful technology for electronic developing firms, this acquisition will help improve application of Altium, lets wait for the results to come.
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