Altair: Siemens to Acquire Altair Engineering in $10.6bn Digital Expansion

Siemens has announced its intent to acquire Altair Engineering, a move consistent with its digital expansion strategy, for $10.6 billion. The acquisition sees Siemens offering $113 per share for Altair, a price reflecting an 18.7% premium on Altair's recent closing shares. Situated in Michigan, Altair specializes in simulation software capable of predicting the operational efficacy of products. This software acquisition is pivotal for Siemens, aligning with its strategy to enhance its digital offerings alongside its traditional hardware products. Siemens anticipates that the acquisition will boost its digital revenue by about 8% upon completion and improve earnings per share within two years post-closure, which is scheduled for the latter half of 2025. Siemens enters this transaction path amid a competitive industrial software market, standing alongside firms like Rockwell Automation and ABB. The acquisition reflects a broad trend in the industry where engineering software companies become prized assets amidst the rise of artificial intelligence.