Siemens to acquire software provider Altair Engineering
October 30, 2024
Siemens has signed an agreement to acquire Altair Engineering Inc, an industrial simulation and analysis software provider based in Troy, Michigan, USA. The deal, valued at approximately $10 billion, will see Altair shareholders receive $113 per share. The price represents a 19% premium to Altair’s closing price on October 21, 2024, the last trading day before media reported the possible transaction.
“Acquiring Altair marks a significant milestone for Siemens,” stated said Roland Busch, president and CEO of Siemens AG. “This strategic investment aligns with our commitment to accelerate the digital and sustainability transformations of our customers by combining the real and digital worlds. The addition of Altair’s capabilities in simulation, high performance computing, data science, and artificial intelligence together with Siemens Xcelerator will create the world’s most complete AI-powered design and simulation portfolio. It is a logical next step: we have been building our leadership in industrial software for the last fifteen years, most recently, democratising the benefits of data and AI for entire industries.”
Ralf P Thomas, CFO of Siemens AG, added, “The acquisition of Altair is highly synergistic, underpinning Siemens’ stringent capital allocation, balancing investments and shareholder returns on the basis of a strong balance sheet. The transaction is expected to be EPS accretive two years post-closing.”
By adding Altair’s highly complementary simulation portfolio, with strength in mechanical and electromagnetic capabilities, Siemens aims to enhance its Digital Twin to deliver a full-suite, physics-based, simulation portfolio as part of Siemens Xcelerator. Altair’s data science and AI-powered simulation capabilities allow users from engineers to hobbyists to access simulation expertise, decreasing time to market and accelerate design iterations.
“This acquisition represents the culmination of nearly forty years in which Altair has grown from a startup in Detroit to a world-class software and technology company. We have added thousands of customers globally in manufacturing, life sciences, energy and financial services, and built an amazing workforce, and innovative culture,” said James Scapa, Altair’s founder and CEO. “We believe this combination of two strongly complementary leaders in the engineering software space brings together Altair’s broad portfolio in simulation, data science, and HPC with Siemens’ strong position in mechanical and EDA design. Siemens’ outstanding technology, strategic customer relationships, and honest, technical culture is an excellent fit for Altair to continue its journey driving innovation with computational intelligence.”
Closing of the transaction is subject to customary conditions and is expected within the second half of calendar year 2025.
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