Siemens Strengthens Its Technology Capabilities

Siemens has agreed to acquire Altair Engineering to strengthen its leading position in the global industrial simulation and analysis market.

Under this agreement, Altair shareholders will receive USD 113 per share, valuing Altair's enterprise value at approximately USD 10 billion. The offer represents a 19% premium over Altair's pre-transaction share price and is presented as a step reinforcing Siemens' leadership in the industrial software market.

SIEMENS AND ALTAIR COMBINE STRENGTHS

Roland Busch, CEO of Siemens AG, characterized the deal as a strategic move toward accelerating Siemens' digital and sustainability transformation. Busch stated that "combining Altair's capabilities in simulation and artificial intelligence with Siemens Xcelerator will deliver a comprehensive AI-enabled design and simulation portfolio," adding that this merger will further strengthen Siemens' global technology leadership.

Ralf P. Thomas, CFO of Siemens, emphasized that the acquisition creates significant strategic and financial synergies. He noted that the transaction will strengthen Siemens' revenue and balance sheet structure and is expected to contribute positively to earnings within two years following closing.

A NEW CHAPTER IN ALTAIR'S DEVELOPMENT

James Scapa, founder and CEO of Altair, underscored the significance of this pinnacle point in Altair's 40-year journey. Scapa stated that the combination of Altair's broad customer base and innovative culture with Siemens' strong technological infrastructure will deliver significant value to the sector. Highlighting how Altair's capabilities in data science and high-performance computing will merge with Siemens' digital twin technology to deliver a comprehensive simulation portfolio, Scapa emphasized that this synergy will benefit many people, from engineers to various specialties.

REVENUE AND GROWTH TARGETS

The transaction is expected to deliver an 8% increase in Siemens' digital business revenues, adding approximately EUR 600 million to Siemens' annual digital business revenue. Siemens expects revenue synergies from Altair's global market access and portfolio complementarity to contribute to medium-term annual revenue growth exceeding USD 500 million and long-term growth exceeding USD 1 billion. Additionally, near-term cost synergies and an EBITDA impact exceeding USD 150 million annually are targeted for the transaction's second year.

TRANSACTION COMPLETION EXPECTED IN 2025

Siemens plans to finance the transaction entirely in cash and its strong balance sheet supports this approach. The acquisition is expected to close in the second half of 2025. Altair, listed on the Nasdaq exchange, provides solutions in simulation, data science and artificial intelligence globally. Founded in 1985, Altair, with approximately 3,500 employees, contributes to the digital transformation of industries.

This acquisition creates a major merger in industrial software, advancing Siemens' innovation in the digital and industrial sectors even further.