Siemens to Acquire Altair Engineering with $10.5 Billion Loan
Deal News | Nov 27, 2024 | EIN
The German industrial giant Siemens AG is set to acquire the American IT firm Altair Engineering Inc. for $10 billion, with a share price set at $113. To fund this acquisition, Siemens has secured a $10.5 billion interim loan from a consortium of 10 partner banks. The acquisition is a strategic move by Siemens to pivot from its traditional heavy equipment business and enhance its industrial software offerings, utilizing Altair's expertise in modeling, high-performance computing, and artificial intelligence in various sectors such as aerospace and automotive. This transaction aligns with Siemens' digital strategy to increase its profitability in the IT sector, aiming to compete with companies like Rockwell Automation and Schneider Electric. The completion of this deal is anticipated in the second half of 2025. Altair Engineering, headquartered in Troy, Michigan, is known for providing cutting-edge software and cloud solutions, with its shares traded on the Nasdaq Stock Exchange.
Sectors
- Information Technology
- Industrial Software
- Financial Services
Geography
- Germany – Siemens AG, the acquiring company, is based in Munich, making Germany a significant geographical focus of the article.
- United States – Altair Engineering, the company being acquired, is headquartered in Troy, Michigan, marking the US as a primary geographical focus.
Industry
- Information Technology – The article discusses Siemens AG's acquisition of Altair Engineering Inc., an IT company providing software and solutions in AI and high-performance computing.
- Industrial Software – Siemens aims to strengthen its position in industrial software through the acquisition of Altair, indicating relevance to this sector.
- Financial Services – Financial structuring is key in this transaction, with a loan facilitated by a consortium of banks for the acquisition.
Financials
- $10.5 billion – Interim loan provided by a consortium of banks for Siemens' acquisition of Altair Engineering.
- $10 billion – Price agreed for the acquisition of Altair Engineering by Siemens.
- $113 per share – The share price set for the acquisition of Altair Engineering.
- $9.46 billion – Total market value of Altair Engineering.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Siemens AG | Bidding Company/Buyer | Company | A German multinational that is acquiring Altair Engineering to enhance its industrial software capabilities. |
| Altair Engineering Inc. | Target Company | Company | An American IT company specializing in software solutions, being acquired by Siemens. |
| Consortium of Banks | Financial Provider | Companies | A group of 10 partner banks providing a $10.5 billion interim loan to Siemens. |