This strategic acquisition underlines Siemens’ aim to bolster its capabilities in industrial software and artificial intelligence. “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,” stated Roland Busch, President and CEO of Siemens AG.
Siemens plans to integrate Altair’s strengths in simulation, high-performance computing, and data science into its Xcelerator portfolio. This move aims to create what Busch described as “the world’s most complete AI-powered design and simulation portfolio.” Siemens’ leadership in industrial software has been developed over the last 15 years, with a particular focus on democratizing access to data and AI across industries.
The acquisition is expected to provide significant financial benefits for Siemens. Ralf P. Thomas, Siemens’ CFO, noted, “The acquisition of Altair is highly synergistic, underpinning Siemens’ stringent capital allocation, balancing investments and shareholder returns on the basis of a strong balance sheet. The transaction is expected to be EPS accretive two years post-closing.”
Founded in 1985, Altair Engineering has grown from a Detroit-based startup to a global leader in computational science and AI, supporting industries such as manufacturing, life sciences, energy, and finance. “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,” said James Scapa, founder and CEO of Altair.
Siemens expects the transaction to boost its digital business revenue by approximately EUR 600 million, adding to the EUR 7.3 billion reported in fiscal 2023. The deal is projected to yield significant revenue synergies through portfolio cross-selling and enhanced market access, with mid-term revenue impact anticipated at over USD 500 million per annum, growing to more than USD 1 billion annually in the long term.
Cost synergies, expected to deliver an EBITDA impact exceeding USD 150 million annually within two years post-closing, are also anticipated. The acquisition will be financed entirely through Siemens’ existing cash resources, supported by proceeds from previous asset sales such as the Innomotics divestment.
Altair’s inclusion will augment Siemens’ digital twin technology, incorporating enhanced mechanical and electromagnetic simulation capabilities. This addition will make simulation tools more accessible, reducing time-to-market and enhancing the design process across industries. The transaction is subject to standard regulatory approvals and is projected to close in the second half of 2025.
Siemens, with its legacy of technological innovation and robust financial position, seeks to maintain its market-leading status. The company’s strong fiscal 2023 performance, with €77.8 billion in revenue and €8.5 billion in net income, underscores its capability to support such strategic investments. Altair’s expertise and workforce, particularly its 1,400 employees in research and development, will strengthen Siemens’ commitment to shaping the future of industry through technology.
Source: Siemens.
