Siemens Acquires Altair for $10.6 Billion to Boost AI-Powered Industrial Software Portfolio

Siemens to buy Altair for $10bn to boost industrial software

Altair is known for its computational science and AI for industrial simulation and data analytics. German conglomerate Siemens has agreed to buy Altair in a multibillion-dollar deal. Altair is a US-based tech company known for its IoT, simulation, high-performance computing, AI and data analytics software. Through the acquisition, Altair shareholders will receive $113 per share, representing a total deal value of $10.6bn. Siemens hopes the purchase will boost the company's industrial software and AI offering with Altair's data science and AI-powered simulation portfolio. Roland Busch, president and CEO of Siemens, said the acquisition is a significant milestone for the company as it aligns with Siemens' plans. "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," he said. "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." Altair founder and CEO, James Scapa, said the deal is an excellent fit. "This acquisition represents the culmination of nearly 40 years in which Altair has grown from a start-up in Detroit to a world-class software and technology company," he said. "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." The deal will be Siemens' largest acquisition since its subsidiary, Siemens Healthineers, acquired medical device maker Varian Medical Systems for $16.4bn. Siemens Healthineers was spun off from Siemens in 2016 and successfully went public in 2018. The medtech business has a presence in Ireland and, in 2023, announced the creation of 100 new jobs as part of an expansion in Swords Co Dublin. Don't miss out on the knowledge you need to succeed. Sign up for the Daily Brief, Silicon Republic's digest of need-to-know sci-tech news.

Siemens buys US software group Altair in deal worth billions of Euros

Altair Engineering is a leading provider of software in the industrial simulation and analysis market and offers its products to the aviation, automotive and financial services sectors. According to the agreement signed by Siemens, Altair shareholders will receive $113 (€103.97) per share, representing and enterprise value of approximately $10bn (€9.2bn). The German multi-national said that the acquisition would strengthen its position as a technology company and also its leadership in industrial software. The President and CEO of Siemens AG, Roland Busch, said in a statement: "Acquiring Altair marks a significant milestone for Siemens......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." Mr Busch added: "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." Commenting on the acquisition, the CFO of Siemens AG, Ralf P. Thomas said: "The acquisition of Altair is highly synergistic, underpinning Siemens' stringent capital allocation, balancing investments and shareholder returns on the basis of a strong balance sheet". Altair's founder and CEO, James Scapa, said in a statement: "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. "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. He added: "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."

Siemens $10B Buy Of Altair To Create 'World's Most Complete AI-Powered Design And Simulation Portfolio'

'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,' says Roland Busch, president and CEO of Siemens AG. Roland Busch, president and CEO of Siemens AG, said the acquisition will drive customers' digital and sustainability transformation 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 Busch in a statement. [Related: IT Star Ahead CEO On Acquisition Strategy That Led To $4B In Revenue] Busch said acquiring Altair is the "logical next step" for the Germany-based company. "We have been building our leadership in industrial software for the last 15 years, most recently democratizing the benefits of data and AI for entire industries," he said. Troy, Mich.-based Altair is a global provider of software and cloud solutions in simulation, high- performance computing, data analytics and AI. Its digital simulation software helps predict how products will work in the real world. Market analysts at Alpha Wertpapierhandel said the acquisition of Altair will strengthen Siemens' digital industries division. "Altair adds AI-powered design and simulation," Alpha said in a report Thursday. "All in all, longer term, this seems to be a good deal for Siemens." Siemens agreed to buy Altair for $113 per share in cash with a total deal value of $10.6 billion. The deal represents a 19 percent premium to the closing price of Altair shares on Oct. 21, when news reports first surfaced of the acquisition. Siemens expects to close its acquisition of Altair in the second half of 2025. Siemens said the transaction will have a positive revenue impact of about $500 million per year in the midterm and more than $1 billion per year in the long term. James Scapa, Altair's founder and CEO, said the acquisition represents the culmination of nearly 40 years in which Altair has grown from a startup to a world-class software and technology company. "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," said Scapa in a statement. "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." Altair's stock is down 4 percent in pre-market trading, currently at $108.63 per share as of Thursday morning. Siemens stock price is flat in pre-market trading at $97.30 per share.