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(MENAFN- The Arabian Post)
Siemens has finalized the acquisition of Altair Engineering Inc., a prominent provider of industrial simulation and analysis software, for approximately $10.6 billion. This strategic move is set to enhance Siemens’ capabilities in simulation, high-performance computing , data science, and artificial intelligence .
The transaction involves Siemens purchasing all outstanding shares of Altair at $113.00 per share in cash, representing a 19% premium over Altair’s closing price on October 21, 2024, the last trading day before media speculation about the deal. This valuation underscores the premium Siemens is willing to pay to bolster its industrial software portfolio.
Roland Busch, President and CEO of Siemens AG, emphasized the significance of the acquisition, stating that integrating Altair’s innovations into the Siemens Xcelerator platform will create the world’s most comprehensive AI-powered design, engineering, and simulation portfolio. He highlighted that this integration aims to help customers innovate at the scale and speed demanded by today’s complex world.
Altair Engineering, founded in 1985 and headquartered in Troy, Michigan, has established itself as a leader in computational science and AI. The company offers a suite of software and cloud solutions for product development, HPC, simulation, data analytics, and AI. Its flagship product, the HyperWorks platform, provides users across various industries with AI-powered design and simulation tools within an open, unified environment.
The acquisition is expected to significantly enhance Siemens’ position in the industrial software market. By incorporating Altair’s advanced simulation and AI technologies, Siemens aims to offer more precise and powerful solutions, enabling customers to bring complex products to market faster.
Industry analysts view this move as a strategic effort by Siemens to strengthen its leadership in industrial software and AI. The integration of Altair’s capabilities is anticipated to transform how digital twins and simulations are utilized across engineering and manufacturing sectors. This aligns with Siemens’ broader strategy to accelerate the digital and sustainable transformation of its customers by bridging the real and digital worlds.
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The deal, announced on October 30, 2024, has undergone the necessary regulatory approvals and was completed as scheduled in the second half of 2025. Siemens projects that the acquisition will be accretive to earnings per share within two years and expects it to increase digital business revenue by approximately 8% in fiscal 2023.
Altair’s shareholders have approved the merger, with the company’s stockholders receiving $113.00 per share in cash. This agreement reflects a significant premium over Altair’s unaffected all-time high closing price, indicating the strategic value Siemens places on Altair’s technological assets.
The integration process will involve incorporating Altair’s cutting-edge simulation, AI, and HPC tools into Siemens’ existing product lifecycle management technologies, particularly within the Teamcenter and Simcenter suites. This synergy is expected to enhance Siemens’ digital twin capabilities, providing customers with more robust tools for product design and analysis.
Siemens’ acquisition of Altair is part of a broader trend in the industrial sector, where companies are investing heavily in software and AI to stay competitive. The increasing complexity of products and the growing importance of digital twins and simulations have made industrial software a critical area for investment. By acquiring Altair, Siemens positions itself to better meet these evolving demands and offer more integrated solutions to its customers.
The financial community has noted the substantial investment Siemens has made in this acquisition, with some analysts highlighting the high valuation relative to Altair’s projected earnings. However, Siemens anticipates that cost synergies and enhanced revenue opportunities will justify the premium paid, with expectations of significant additional earnings before interest, taxes, depreciation, and amortization in the mid to long term.
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This acquisition also reflects Siemens’ commitment to expanding its footprint in the U.S. market, particularly in the field of factory automation. By integrating Altair’s technologies, Siemens aims to strengthen its offerings and better serve its North American customer base.
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