Siemens Strengthens Leadership in Industrial Software and AI with Acquisition of Altair Engineering
October 31, 2024 | SiemensEstimated reading time: 3 minutes
Siemens has signed an agreement to acquire Altair Engineering Inc., a leading provider of software in the industrial simulation and analysis market. Altair shareholders will receive US$113 per share, representing an enterprise value of approximately $10 billion. The offer price represents a 19% premium to Altair's unaffected closing price on October 21, 2024, the last trading day prior to media reports regarding a possible transaction. With this acquisition Siemens strengthens its position as a leading technology company and its leadership in industrial software.
"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. "It is a logical next step: 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."
"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. The transaction is expected to be EPS accretive two years post-closing," said Ralf P. Thomas, CFO of Siemens AG.
"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," said James Scapa, Altair's founder and CEO. "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."
By adding Altair's highly complementary simulation portfolio, with strength in mechanical and electromagnetic capabilities, we are enhancing our comprehensive Digital Twin to deliver a full-suite, physics-based, simulation portfolio as part of Siemens Xcelerator. Altair's data science and AI-powered simulation capabilities allow anyone, from engineers to generalists, to access simulation expertise to decrease time-to-market and accelerate design iterations. Additionally, Altair's data science capabilities will unlock Siemens' industrial domain expertise in product lifecycle and manufacturing processes.
Significant synergies and EPS accretive
The transaction will strongly increase Siemens' digital business revenue by +8%, adding EUR ~600 million to Siemens' digital business revenue of EUR 7.3 billion as reported in fiscal year 2023. Siemens expects to achieve significant revenue synergies especially from cross-selling of the highly complementary portfolios and from providing Altair full access to Siemens's global footprint and global industrial enterprise and customer base with a revenue impact of more than USD 500 million p.a. mid-term growing to more than USD 1.0 billion p.a. long-term. Moreover, Siemens aims to achieve cost synergies on a short-term basis, with an EBITDA impact of more than USD 150 million p.a. by year two post-closing.
The transaction is expected to be EPS (pre-PPA) accretive by year two post-closing. The acquisition will be fully cash-financed from Siemens' existing resources and its capacity to fully finance the transaction based on Siemens' strong balance sheet, as underlined by its exceptional rating, which Siemens is committed to maintain.
Preemptive deleveraging is supported by significant cash proceeds from the already closed Innomotics divestment. In addition, Siemens has substantial financing potential from the sale of shares in listed entities. Closing of the transaction is subject to customary conditions and is expected within the second half of calendar year 2025.
Testimonial
"Advertising in PCB007 Magazine has been a great way to showcase our bare board testers to the right audience. The I-Connect007 team makes the process smooth and professional. We’re proud to be featured in such a trusted publication."
Klaus Koziol - atgSuggested Items
Siemens, ASE Collaborate on Workflows for ASE’s VIPack Advanced Packaging Platform
09/25/2025 | SiemensSiemens Digital Industries Software announced that it is collaborating with Advanced Semiconductor Engineering, Inc. (ASE), the leading global provider of semiconductor manufacturing services in assembly and test, to develop 3Dblox-based workflows for the ASE VIPack™ platform using Siemens’ Innovator3D IC™ solution, which is fully certified for the 3Dblox standard..
Siemens Collaborates with TSMC to Accelerate 3D IC and AI-driven Circuit and Systems Design
09/24/2025 | SiemensAt the 2025 TSMC North America Open Innovation Platform® (OIP) Ecosystem Forum, Siemens Digital Industries Software announced multiple new collaborations with TSMC, including product certifications and innovative design solutions enablement initiatives for the foundry’s newest and most advanced process technologies.
Siemens Launches Lighthouse Project of Made for Germany Initiative
09/23/2025 | SiemensIn the presence of political leaders and representatives of the business community, Siemens today laid the cornerstone for the new Siemens Technology Campus in Erlangen, Germany. A lighthouse project of the Made for Germany initiative, the Technology Campus will further strengthen the economic viability of Germany and the region primarily in the area of power electronics.
Siemens Accelerates Complex Semiconductor Design and Test with Tessent IJTAG Pro
09/22/2025 | Siemens Digital Industries SoftwareSiemens Digital Industries Software announced Tessent™ IJTAG Pro software, which will transform IJTAG (IEEE 1687) input/output by enabling parallel operations of the traditionally serial operation and provide read and write access to custom hardware.
Siemens, TRUMPF Partner to Accelerate Digital Manufacturing and AI Readiness
09/16/2025 | SiemensTechnology company Siemens and leading machine tools and laser manufacturer TRUMPF announced a partnership that promises to elevate industrial production by harnessing advanced digital manufacturing solutions.