Siemens acquires Altair Engineering in a landmark deal that values the leading provider of software for industrial simulation and analysis at approximately USD 10 billion. Altair shareholders will receive USD 113 per share, for an enterprise value of around USD 10 billion.
The offer price is a 19% premium to Altair’s unaffected closing price on October 21, 2024, the last trading day before media reports of a potential transaction. With this acquisition, Siemens strengthens its position as a leading technology company as well as its leadership in industrial software.
Siemens acquires Altair Engineering: A Strategic Investment
“Acquiring Altair marks a significant milestone for Siemens. This strategic investment aligns with our commitment to accelerate the digital and sustainability transformations of our customers by combining the real and digital worlds. The addition of Altair’s capabilities in simulation, high performance computing, data science, and artificial intelligence together with Siemens Xcelerator will create the world’s most complete AI-powered design and simulation portfolio,” said Roland Busch, President and CEO of Siemens AG.
By incorporating Altair’s highly complementary simulation portfolio, which specialises in mechanical and electromagnetic capabilities, Siemens will expand its comprehensive Digital Twin to provide a full-suite, physics-based simulation portfolio as part of Siemens Xcelerator.
Financial Impact and Synergies
The transaction is expected to significantly boost Siemens’ digital business revenue by 8%, adding approximately EUR 600 million to its existing digital business revenue of EUR 7.3 billion reported in fiscal year 2023. Siemens anticipates achieving substantial revenue synergies through cross-selling opportunities and providing Altair access to Siemens’ global industrial enterprise customer base.
According to Ralf P. Thomas, CFO of Siemens AG, “It is a logical next step: we have been building our leadership in industrial software for the last 15 years, most recently, democratising the benefits of data and AI for entire industries. The acquisition of Altair is highly synergistic, underpinning Siemens’ stringent capital allocation.”
The company projects:
- Revenue impact of over USD 500 million per annum mid-term, growing to more than USD 1.0 billion per annum long-term
- Cost synergies with an EBITDA impact exceeding USD 150 million per annum by year two post-closing
- EPS (pre-PPA) accretive by year two post-closing
From Detroit Startup to Global Technology Leader
“This acquisition represents the culmination of nearly 40 years in which Altair has grown from a Startup in Detroit to a world-class software and technology company. We have added thousands of customers globally in manufacturing, life sciences, energy and financial services, and built an amazing workforce, and innovative culture.”
– James Scapa, Founder and CEO of Altair
Scapa added, “We believe this combination of two strongly complementary leaders in the engineering software space brings together Altair’s broad portfolio in simulation, data science, and HPC with Siemens’ strong position in mechanical and EDA design. Siemens’ outstanding technology, strategic customer relationships, and honest, technical culture is an excellent fit for Altair to continue its journey driving innovation with computational intelligence.”
About Manufactur3D Magazine: Manufactur3D is an online magazine on 3D Printing. Visit our Global News page for more updates on Global 3D Printing News. To stay up-to-date about the latest happenings in the 3D printing world, like us on Facebook or follow us on LinkedIn and Twitter. Follow us on Google News.
