Siemens has announced the acquisition of Altair Engineering, a move that aims to strengthen its leadership in industrial software and artificial intelligence. The acquisition is seen as a significant milestone for Siemens in its commitment to accelerate digital and sustainability transformations for its customers.
Roland Busch, President and CEO of Siemens AG, commented on the 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.”
The acquisition is expected to be EPS accretive two years post-closing. Ralf P. Thomas, CFO of Siemens AG, stated: “The acquisition of Altair is highly synergistic, underpinning Siemens's stringent capital allocation, balancing investments and shareholder returns on the basis of a strong balance sheet.”
James Scapa, founder and CEO of Altair, expressed optimism about the merger: “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.”
The transaction will increase Siemens' digital business revenue by 8%, adding approximately EUR 600 million to its reported fiscal year 2023 revenue. Significant revenue synergies are expected from cross-selling opportunities due to the complementary nature of both companies' portfolios.
Closing conditions are customary for such transactions with completion anticipated in the second half of 2025.
Altair Engineering provides software solutions across various industries with strengths in computational science and AI. Founded in 1985, it went public on Nasdaq in 2017.