Siemens has introduced a $10.6 billion deal to amass Altair Engineering, a number one supplier of engineering software program. This acquisition is geared toward boosting Siemens’ presence within the industrial software program market, significantly in areas like simulation, knowledge science, high-performance computing, and synthetic intelligence.
The provide worth of $113 per share represents a premium of about 18.7% to Altair’s closing worth on October 21, 2024. This deal is predicted to shut within the second half of 2025, following regulatory approvals and different customary closing circumstances.
This acquisition aligns with Siemens’ technique to reinforce its digital and sustainability transformations by combining the actual and digital worlds. It is anticipated to create the world’s most full AI-powered design and simulation portfolio.
It’s to be famous that upon completion of the acquisition, Altair’s frequent inventory (Nasdaq: ALTR) will not be listed on any public inventory trade.
Additional, the acquisition is predicted to considerably strengthen Siemens’ place within the industrial software program market. Altair’s experience in simulation, knowledge science, high-performance computing, and synthetic intelligence enhances Siemens’ present capabilities.
The commercial software program market, presently valued at $21.5 billion, is predicted to develop at an annual fee of 16.7%. Siemens goals to seize a bigger share of this rising market by this acquisition.
“This acquisition represents the end result of almost 40 years by which Altair has grown from a startup in Detroit to a world-class software program and expertise firm. We now have added hundreds of shoppers globally in manufacturing, life sciences, power and monetary providers, and constructed an incredible workforce, and revolutionary tradition,” mentioned James Scapa, Altair’s founder and CEO. “We consider this mix of two strongly complementary leaders within the engineering software program area brings collectively Altair’s broad portfolio in simulation, knowledge science, and HPC with Siemens’ robust place in mechanical and EDA design. Siemens’ excellent expertise, strategic buyer relationships, and trustworthy, technical tradition is a superb match for Altair to proceed its journey driving innovation with computational intelligence.”
Apart from Altair, Siemens, by way of it is spinoff Siemens Healthineers, acquired medical gadget maker Varian Medical Methods, in 2020, for $16.4 billion, geared toward increasing Siemens Healthineers’ capabilities in most cancers care. Siemens additionally acquired Flender, a supplier of mechanical drive methods, for €900 million in 2020. This acquisition aimed to broaden Siemens’ capabilities within the power and automation sectors.
In different notable industrial software program acquisitions, Broadcom introduced its plan to amass VMware for whopping $61 billion, in 2023. This deal goals to create a number one infrastructure expertise. Cisco acquired Splunk for $28 billion in the identical yr 2023, enhancing its capabilities in knowledge and safety analytics.
IBM acquired Octo Consulting Group for $1.3 billion in 2022, increasing its authorities IT modernization providers.
These acquisitions replicate the continued consolidation and development within the industrial software program market, pushed by the rising demand for superior applied sciences like AI, knowledge analytics, and cybersecurity options.