Siemens Raises $1.5 Billion from Healthineers Stake Sale
Deal News | Feb 20, 2025 | Zawya
German engineering giant Siemens has mobilized approximately $1.5 billion by selling a 2% stake, equating to 26.5 million ordinary shares, in its healthcare subsidiary, Siemens Healthineers. This move reduces Siemens' stake from 75% to 73%. The capital raised is expected to assist in financing Siemens' recent $10.6 billion acquisition of U.S. software firm, Altair Engineering. Planned strategic reductions in both Siemens Healthineers and Siemens Energy stakes have been disclosed, punctuated by a lockup period restricting further sales of Healthineers' remaining shares for 90 days. The transaction was coordinated by Morgan Stanley, Barclays, and BNP Paribas, with full completion slated for February 24. Siemens is set to deliver a strategic update for Healthineers in December, further elucidating its future directions.
Sectors
- Healthcare Equipment & Services
- Engineering & Construction
- Software & Services
Geography
- Germany – Siemens is a German multinational corporation, and the company's strategic decisions and market activities are rooted here.
- United States – Altair Engineering, the software firm Siemens intends to acquire with proceeds from the Healthineers stake sale, is based in the U.S.
Industry
- Healthcare Equipment & Services – Siemens Healthineers is a key player in the medical equipment sector, making this industry relevant to the article due to the focus on Siemens' stake sale.
- Engineering & Construction – Siemens is primarily known for its engineering and technological services, pertinent to its investment and divestment activities outlined in the article.
- Software & Services – The acquisition of Altair Engineering positions Siemens within the software and IT services market, showcasing a strategic move towards digital advancements.
Financials
- $1.5 billion – The proceeds Siemens raised from selling a 2% stake in Siemens Healthineers.
- $10.6 billion – The total acquisition cost for Altair Engineering.
- 26.5 million shares – The volume of ordinary shares sold by Siemens in Siemens Healthineers.
- 73% – The remaining stake Siemens holds in Siemens Healthineers post-sale.
- 90 days – The lockup period Siemens agreed to, within which they won't sell more of Siemens Healthineers shares.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Siemens AG | Selling Company | Company | A German multinational conglomerate focusing on engineering and technology, Siemens divested a portion of its stake in Siemens Healthineers. |
| Siemens Healthineers | Target Company | Company | A subsidiary of Siemens AG that specializes in healthcare equipment and services, whose shares were part of the stake sale. |
| Altair Engineering | Target of Acquisition | Company | A U.S.-based software firm Siemens plans to acquire using funds from Healthineers' stake sale, totaling $10.6 billion. |
| Morgan Stanley | Financial Advisor | Company | One of the global coordinators and book runners for the Siemens Healthineers stake sale. |
| Barclays | Financial Advisor | Company | Another global coordinator and book runner for Siemens' sale of stake in Siemens Healthineers. |
| BNP Paribas | Financial Advisor | Company | A financial institution that coordinated the stake sale in Siemens Healthineers along with others. |
| Roland Busch | Individual Strategy | People | CEO of Siemens AG, involved in strategic decision-making including stake sales and acquisitions. |
| Ralf Thomas | Individual Strategy | People | CFO of Siemens AG, overseeing financial strategies and upcoming updates on Siemens Healthineers. |