SYDNEY – Altium today announced plans to acquire Morfik Technology, a provider of cloud-based software applications, in an all-stock transaction worth an estimated AU$3.3 million. The deal is pending due diligence.

Under terms of the deal, Altium will issue 13.3 million ordinary shares (representing between 14 and 15% of outstanding shares) in exchange for 100% of Morfik’s outstanding shares. At its current share trading price of AU$0.25, the deal would be worth AU$3.3 million.

The deal includes Sydney-based Morfik's staff, IP and other assets. Morfik CEO Aram Mirkazemi will join Altium as chief of engineering, responsible for R&D strategy and product development.

Morfik's software is used to design, engineer and deploy cloud-based software applications. Its 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.

The acquisition should boost Altium’s engineering and technological capabilities in web applications, Altium said. When developed, this platform will form the basis of the tools and infrastructure required to help electronics designers develop their own ecosystems of intelligent, connected devices, running their own cloud-based applications. Electronics design content, including new design features, reference designs, and component libraries, will be delivered using this cloud-based framework.

In a press release, Altium CEO Nick Martin said, “We see the need for a move from designing discrete devices to designing ecosystems of devices that deliver better customer experiences. We believe that cloud-based software applications, engineered to harness the power of Internet-enabled intelligent devices, are a vital part of this future. The combination of the Morfik team and the technology they have developed will help us accelerate and advance this process.”

Altium will maintain Morfik's existing business model, including software tools and subscriptions for building web-based applications, for Morfik’s existing customers.

Altium 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.