Altium’s exit sparks hopes of ASX tech renaissance
Altium’s $9.1 billion takeover is being offered up as evidence Australian tech companies can succeed on the local market – and investors hope there’s more to come.
The blockbuster $9.1 billion acquisition of local software company Altium announced on Thursday has ignited hopes that Australian tech companies could list locally and attract global attention without requiring the glitter and glamour of the Nasdaq.
Atlassian's stunning rally since its 2015 IPO on the Nasdaq, and Canva's likely decision to eventually list in the US has led some founders and venture capitalists to dismiss the ASX as a destination for high growth technology companies.
According to this line of thinking, companies can stay private for longer due to plentiful venture capital, and eventually list in the US where capital markets are deeper and where tech businesses can command higher valuations.
But some Australian investors see a gap opening up on the ASX for tech companies with certain characteristics, and are confident Altium won’t be the last success story they see emerge on the local bourse.
