Siemens has announced the acquisition of Altair Engineering Inc., a leader in software solutions for simulation and analysis in the industrial sector, in a transaction valued at approximately $10 billion. Altair’s shareholders will receive $113 per share, a price that represents a 19% premium over the closing price of Altair shares on October 21, 2024, prior to rumors of a potential sale.
This acquisition will allow Siemens to strengthen its position in the technology sector by integrating Altair’s simulation and high-performance computing capabilities with the Siemens Xcelerator platform. Through this, the company aims to create the world’s most comprehensive artificial intelligence-driven design and simulation portfolio, supporting the digital transformation and sustainability of its customers.
Roland Busch, President and CEO of Siemens, highlighted the significance of this operation for the company’s future: “Acquiring Altair marks a significant milestone for Siemens. This strategic investment aligns with our commitment to accelerate our customers’ digital transformation by combining the physical and digital worlds. The addition of Altair enhances simulation power, artificial intelligence, and data science, creating a unique offering in the market.”
Expansion of the Digital Business and Strategic Synergies
The acquisition of Altair will boost Siemens’ digital business revenue by 8%, adding approximately €600 million to the €7.3 billion reported in fiscal year 2023. Siemens anticipates significant revenue synergies, particularly through the cross-selling of complementary portfolios and expanding Altair’s access to Siemens’ global network, with a projected revenue impact of over $500 million annually in the medium term and more than $1 billion in the long term.
Operationally, the integration of Altair is expected to generate cost synergies, with an EBITDA impact of over $150 million annually in the first two years following the transaction’s closing. This acquisition will be fully funded through Siemens’ own resources, maintaining its strong financial position and top-tier credit rating.
Ralf P. Thomas, Chief Financial Officer of Siemens, emphasized that the purchase of Altair is “highly synergistic, backed by a disciplined capital allocation that balances investment and profitability for shareholders, and is expected to be accretive to earnings per share starting in the second year post-closing.”
Unification of Leaders in Simulation and Data Science
Founded in 1985 and based in Troy, Michigan, Altair employs more than 3,500 people, approximately 1,400 of whom are dedicated to research and development. The company is globally recognized for its expertise in simulation, cloud computing, artificial intelligence, and data science, focusing on providing tools that help businesses make smarter and more competitive decisions.
James Scapa, founder and CEO of Altair, celebrated the joining of the two companies: “This agreement represents the culmination of nearly 40 years in which Altair has grown from its beginnings to become a world-class software company. We are excited to combine our expertise in simulation and data science with Siemens’ advanced technology and strong customer network, a fantastic step to continue driving innovation in computational intelligence.”
Preparing for the Future of Digital Transformation
With the integration of Altair, Siemens will enhance its Digital Twin offering, providing a comprehensive portfolio of physical simulation and data science. This acquisition will allow engineers and professionals across various sectors to access advanced simulations to reduce development times and improve efficiency. Additionally, Altair’s technology will help Siemens leverage its expertise in product lifecycle processes and manufacturing, facilitating the comprehensive digitalization of the industry.
The transaction is subject to customary closing conditions and is expected to be finalized in the second half of 2025. With this acquisition, Siemens continues to position itself as an undisputed leader in industrial technology, driving innovation and sustainability in an increasingly demanding digital era.
source: siemens