Siemens Acquires Altair Engineering in $10.6 Billion Deal
Strategic purchase strengthens Siemens' presence in industrial software market
In a significant move to bolster its position in the industrial software market, Siemens has announced the acquisition of US-based engineering software company Altair Engineering for $10.6 billion.
The deal, marking Siemens' largest acquisition since the 2020 purchase of Varian Medical Systems by its Healthineers unit, positions the company to enhance its digital offerings, particularly in artificial intelligence-driven design and simulation.
Based in Michigan, Altair's software is known for predicting product performance in real-world scenarios, aligning with Siemens' strategy to integrate digital and physical systems.
Despite concerns over the 18.7% premium paid for Altair, analysts suggest that the acquisition will ultimately benefit Siemens' digital industries division.
The acquisition is expected to close in the second half of 2025, with Siemens forecasting a positive impact on earnings per share within two years and a notable increase in its digital business revenue.
The industrial software market, currently valued at $21.5 billion, is anticipated to expand at a rate of 16.7% annually, with Siemens competing against firms like Rockwell Automation and ABB.
Analysts acknowledge the acquisition may position Siemens more competitively against companies like Synopsys and Cadence Design Systems, which are also active in leveraging AI for software development.
The deal, marking Siemens' largest acquisition since the 2020 purchase of Varian Medical Systems by its Healthineers unit, positions the company to enhance its digital offerings, particularly in artificial intelligence-driven design and simulation.
Based in Michigan, Altair's software is known for predicting product performance in real-world scenarios, aligning with Siemens' strategy to integrate digital and physical systems.
Despite concerns over the 18.7% premium paid for Altair, analysts suggest that the acquisition will ultimately benefit Siemens' digital industries division.
The acquisition is expected to close in the second half of 2025, with Siemens forecasting a positive impact on earnings per share within two years and a notable increase in its digital business revenue.
The industrial software market, currently valued at $21.5 billion, is anticipated to expand at a rate of 16.7% annually, with Siemens competing against firms like Rockwell Automation and ABB.
Analysts acknowledge the acquisition may position Siemens more competitively against companies like Synopsys and Cadence Design Systems, which are also active in leveraging AI for software development.
