TOKYO, Feb 15 Reuters Japan39;s Renesas Electronics on Thursday said it would buy electronics design firm Altium for 5.9 billion in cash, as the acquisitive automotive chipmaker looks to offer digital device design to customers.

The acquisition places Renesas at the forefront of dealmaking and investment in Japan39;s chips industry, with the government making efforts to improve competitiveness and boost supply chain resilience against geopolitical shocks.

Renesas, which manufactures chips for automakers such as Toyota and Nissan, aims to provide device design through the purchase of Altium, which offers digital tools for engineers and designers devising circuit boards.

As long as we remain a traditional device manufacturer we will only be marginalised, Renesas CEO Hidetoshi Shibata said at a news conference.

Renesas has offered A68.50 per Altium share, 34 more than the stock39;s Wednesday closing price, and said it will finance the purchase with cash on hand and bank loans.

Altium is headquartered in the United States and listed in Australia. It booked sales of 263 million in the year ended June with an earnings before interest, tax, depreciation and amortisation margin of 36.5.

This is going to help us execute at a faster pace, Altium CEO Aram Mirkazemi told the news conference.

The deal has been approved by both companies39; boards of directors but requires approval from Altium shareholders, an Australian court and regulators, Renesas said. It expects the…