Siemens AG today announced that it has formally signed an agreement to acquire Altair Engineering Inc., a leading manufacturer of industrial simulation software in the United States, for an enterprise value of approximately $10 billion. This strategic acquisition marks a further transformation of Siemens into a higher margin software-driven product line and will significantly enhance its technical capabilities in industrial software and artificial intelligence.

  Under the terms of the agreement, Siemens will offer Altair shareholders $113 per share, representing a 19 percent premium to Altair's closing price on the last trading day prior to the acquisition. The acquisition is expected to close in the second half of 2025 and is subject to customary closing conditions.

  Roland Busch, President and CEO of Siemens AG, said: "The acquisition of Altair marks an important milestone for Siemens. This strategic investment is consistent with our commitment to help our customers accelerate digital transformation and achieve sustainability by merging the physical and digital worlds. The combination of Altair's capabilities in simulation, high-performance computing, data science and artificial intelligence with Siemens Xcelerator will create the world's most complete portfolio of AI-driven design and simulation products."

  Founded in 1985, Altair is headquartered in Troy, Michigan, USA, and employs more than 3,500 people worldwide, approximately 1,400 of whom work in research and development. The company, which went public on Nasdaq in 2017, provides software and cloud computing solutions in simulation and analytics, data science and AI, and high-performance computing to help companies across industries make informed decisions and compete in an increasingly connected world.

  With this acquisition, Siemens will further strengthen its leadership position in technology and industrial software. Altair's simulation portfolio is complementary to Siemens in the areas of mechanical and electromagnetic functions, enabling Siemens to further enhance digital twin technology and offer customers a complete physics-based simulation portfolio through Siemens Xcelerator. Altair's data science and AI-driven simulation capabilities make it easier for engineers and employees alike to gain simulation expertise, reduce time-to-market, and accelerate design iterations.

  Ralf P. Thomas, Chief Financial Officer of Siemens AG, said: "The acquisition of Altair is highly synergistic and will support Siemens' disciplined capital allocation and balance of investment and shareholder returns on the basis of a strong balance sheet. The transaction is expected to be accretive to earnings per share two years after closing."

  James Scapa, founder and CEO of Altair, said: "This acquisition marks the culmination of nearly 40 years of Altair's evolution from a startup in Detroit to a world-class software and technology company. We believe that the combination of two highly complementary leaders in engineering software, combining Altair's broad product portfolio in simulation, data science and HPC with Siemens' strong position in mechanical and EDA design, will unlock tremendous potential."

  The acquisition is expected to significantly increase Siemens' digital revenue by 8%, adding approximately €600 million to Siemens' reported digital revenue of €7.3 billion in fiscal year 2023. In addition, Siemens expects to realize significant revenue synergies, particularly through cross-selling a highly complementary product portfolio and by providing Altair with full access to Siemens' global business and global industrial company customer base, with revenues exceeding $500 million in the medium term and $1 billion in the long term.

  The acquisition will be fully funded in cash from Siemens' existing resources, and Siemens has demonstrated its ability to fully fund the transaction with its strong balance sheet and excellent market rating performance. Siemens has completed the divestment of Innomotics, resulting in significant cash proceeds to support pre-acquisition deleveraging.

The acquisition is not only the largest transaction in Siemens' history, but also an important layout in the field of industrial software and artificial intelligence. By integrating Altair's advanced technologies, Siemens will further enhance the competitiveness of its existing product lines, provide customers with more comprehensive solutions, and accelerate the strategic layout of intelligent manufacturing and digital transformation.