German engineering group Siemens has signed an agreement to acquire industrial software provider Altair Engineering, valued at around $10 billion (€9.225 billion), to strengthen its position in industrial software and AI, the multinational announced.
Under the agreement, Altair shareholders will receive $113 per share, representing a 19% premium to Altair’s closing price on Oct. 21, the last trading day before media reports of a potential transaction.
Siemens estimates that the acquisition will increase the revenue of its digital business by more than 8%, adding approximately €600 million to revenue, and expects to also achieve significant revenue synergies, particularly from the cross-selling of highly complementary portfolios and from providing Altair with full access to Siemens’ global footprint with a revenue impact of more than $500 million (€461 million) in the medium term, growing to more than $1 billion (€922 million) annually in the long term.
In addition, Siemens aims to achieve near-term cost synergies with an impact on gross operating profit (EBITDA) of more than 150 million dollars (138 million euros) annually for the second fiscal year following the closing.
Siemens said the acquisition, which could close in the second half of 2025, will be financed entirely in cash from existing resources and its ability to fully finance the transaction based on the company’s strong balance sheet.
“This strategic investment aligns with our commitment to accelerate our customers’ digital and sustainability transformations by combining the real and digital worlds,” said Roland Busch, President and CEO of Siemens.
“The acquisition of Altair is highly synergistic, supporting Siemens’ strict capital allocation, balancing investments and shareholder returns based on a strong balance sheet. The transaction is expected to be accretive to earnings per share two years after closing,” added Ralf P. Thomas, Chief Financial Officer of Siemens.
