Siemens acquires Altair Engineering for $10 billion

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

 

Admin I Thursday, October 31, 2024

MUNICH – Siemens plans to acquire Altair Engineering for approximately $10 billion as part of its plan to strengthen its software business, the company announced on Wednesday.

The Munich-based conglomerate signed an agreement the Michigan-based firm that would give Altair shareholders $113 per share. The acquisition is expected to be completed by year’s end.

Altair, with some 3,500 employees, provides industrial software for companies in sectors such as aerospace, automotive, and energy, as well as in financial services. The demand for this software is expected to increase with the growing prevalence of artificial intelligence (AI) in everyday life, forecasts show.

Roland Busch, Siemens chief executive and president, called it a “significant milestone” for the company.

“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,” he said

A similar scale acquisition was last undertaken by Siemens in 2015 with Dresser-Rand, which cost $7.6 billion including debt. However, it was surpassed by Siemens Healthineers’ acquisition of cancer specialist Varian for $16.4 billion, which by then was only a majority holding of Siemens following its stock market launch.

Following the stock market launch of Healthineers and the spin-off of the energy technology company Siemens Energy, Siemens is increasingly focusing on its digitalization businesses and is divesting of peripheral areas.

Just a few weeks ago, the firm completed the sale of Innomotics, an electric motor and large drive system company that employs around 15,000 people, Siemens received approximately €3.5 billion ($3.8 billion) for that sale.