Siemens Completes $10.6 Billion Acquisition of Altair Engineering
Deal News | Mar 29, 2025 | EIN
Siemens AG has completed its acquisition of Altair Engineering Inc., a leading provider of industrial simulation and analysis software, for approximately $10.6 billion. The transaction, which involved purchasing all outstanding shares at a 19% premium, aims to bolster Siemens' capabilities in high-performance computing (HPC), simulation, data science, and artificial intelligence (AI). Altair's technology will be integrated into Siemens' Xcelerator platform to create a comprehensive AI-powered design, engineering, and simulation portfolio. The acquisition is seen as a strategic move by Siemens to strengthen its position within industrial software and AI markets, enhance its digital twin capabilities, and accelerate the digital transformation of its customers. Siemens expects the deal to be accretive to earnings per share within two years and to increase digital business revenue by around 8% in fiscal 2023. The acquisition also marks Siemens' increased investment in the U.S. market, particularly in the field of factory automation.
Sectors
- Industrial Software
- Artificial Intelligence
- Manufacturing & Engineering
Geography
- United States – Altair Engineering is headquartered in Troy, Michigan, and the acquisition strengthens Siemens' presence in the U.S. industrial market.
- Germany – Siemens AG is a German multinational corporation and the acquiring entity, reflecting its strategic expansion globally and specifically in the USA.
Industry
- Industrial Software – The acquisition involves Siemens expanding its capabilities within industrial simulation, high-performance computing, and AI, all key components of industrial software.
- Artificial Intelligence – Altair's AI-driven solutions are integral to the acquisition's purpose of enhancing Siemens' AI offerings.
- Manufacturing & Engineering – The acquisition's integration aims to improve design, engineering, and manufacturing processes, particularly through digital twin technology.
Financials
- $10.6 Billion – Total purchase price for the acquisition of Altair Engineering by Siemens.
- 19% Premium – Premium paid by Siemens over Altair's closing share price before acquisition rumors.
- $113.00 per share – Cash offer for each share of Altair Engineering.
- 8% – Expected increase in Siemens' digital business revenue in fiscal 2023 due to the acquisition.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Siemens AG | Acquirer | Company | A German multinational conglomerate and the acquirer in this transaction. |
| Altair Engineering Inc. | Target Company | Company | A provider of industrial simulation and analysis software acquired by Siemens. |
| Roland Busch | CEO of Siemens | Person | President and CEO of Siemens AG, emphasizing the strategic significance of the acquisition. |