Siemens has signed a definitive agreement to acquire Altair Engineering Inc., a top provider of simulation and analysis software for the industrial sector, in a $10 billion deal. Altair shareholders will receive $113 per share, a 19% premium over the pre-deal share price on October 21, 2024. This acquisition aims to strengthen Siemens’ leadership in industrial software by integrating Altair’s advanced simulation, high-performance computing, and data science capabilities into Siemens Xcelerator, creating a comprehensive AI-driven design and simulation portfolio.

Roland Busch, CEO, Siemens, called the acquisition a pivotal step for Siemens, enabling customers to bridge digital and physical operations to enhance digital and sustainability transformations. Siemens CFO Ralf Thomas noted that the transaction aligns with Siemens’ capital allocation strategy, adding that it will boost earnings per share within two years.

James Scapa, CEO, Altair, highlighted the deal as the culmination of Altair’s growth journey from a startup to a global tech leader in simulation and data science. He sees Siemens’ established technology and extensive industrial reach as a strong fit to continue Altair’s innovation in computational intelligence.

The acquisition is expected to boost Siemens’ digital business revenue by 8%, adding approximately €600 million. Siemens anticipates $500 million in annual revenue synergies in the medium term, growing to over $1 billion annually long term, while aiming for $150 million in EBITDA impact within two years.

This all-cash transaction, financed by Siemens' resources, is expected to close in the latter half of 2025, pending regulatory approval.