The deal values Altair at approximately $10.6 billion and the acquisition will strengthen Siemens’ 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 a complete AI-powered design and simulation portfolio,” said Roland Busch, President and CEO of Siemens. “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.”
Founded in 1985, Altair Engineering went public in 2017 and is headquartered in Troy, Michigan and it currently employs over 3,500 people.
“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 complementary simulation portfolio, with its strength in mechanical and electromagnetic capabilities, Siemens said that it would look to strengthen its comprehensive Digital Twin offer to deliver a full-suite, physics-based, simulation portfolio as part of Siemens Xcelerator.
Altair's data science and AI-powered simulation capabilities have been developed to 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 be used to unlock Siemens' industrial domain expertise in product lifecycle and manufacturing processes.
The transaction is expected to strongly increase Siemens' digital business revenue by +8%, adding over 600 million euros to its digital business revenue of 7.3 billion euros as reported in 2023.
The acquisition will be fully cash-financed from Siemens’ existing resources.
