Siemens has announced its acquisition of Altair Engineering, a leading industrial simulation and analysis software provider, in a deal valued at US$10 billion, paying US$113 per share – a 19% premium over Altair’s last trading price. This strategic acquisition aims to deepen Siemens’ capabilities in digitalisation and sustainable innovation by integrating Altair’s expertise in high-performance computing, data science and AI into Siemens’ Xcelerator platform. Siemens’ President and CEO, Roland Busch, called the move a “milestone” that will create the world’s most comprehensive AI-driven design and simulation portfolio, enhancing Siemens’ position in the industrial software sector.
Altair’s simulation strengths, particularly in mechanical and electromagnetic fields, will complement Siemens’ Digital Twin offerings. This combination will allow Siemens to streamline complex simulations for a wide range of industries, from manufacturing to life sciences, by providing enhanced modelling and design iterations that cut down development time. Altair CEO James Scapa stated that Altair’s culture of innovation aligns well with Siemens’ customer-focused, technical approach, making this partnership an “excellent fit” for further advancements in computational intelligence.
The acquisition is expected to drive significant revenue synergies, including cross-selling opportunities within Siemens’ global network, projected to add over US$500 million annually in mid-term revenue and exceeding US$1 billion annually in the long term. Cost synergies are also anticipated, with Siemens projecting a US$150 million annual EBITDA boost within two years. This transaction is set to increase Siemens’ digital business revenue by 8%, with an estimated additional US€600 million by the end of fiscal year 2025. Funded through Siemens’ cash resources, the acquisition is expected to close in the latter half of 2025.
