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Siemens has signed an agreement to acquire Michigan-based Altair Engineering Inc., a leading provider of software and cloud-based solutions for simulation and analysis, data science and AI, and high-performance computing (HPC). The combination of Altair’s capabilities and the Siemens Xcelerator ecosystem is intended to accelerate digital and sustainability transformations by merging the real and digital worlds via an AI-powered design and simulation portfolio.
The addition of Altair’s highly complementary simulation portfolio, with strengths in mechanical and electromagnetic capabilities, is seen as enhancing Siemens’ Digital Twin capabilities and fueling the ability to deliver a full-suite, physics-based, simulation portfolio as part of Siemens Xcelerator. Altair's data science and AI-powered simulation capabilities are designed to allow anyone, from engineers to generalists, to access simulation expertise to decrease time-to-market and accelerate design iterations. Altair's data science capabilities further complement Siemens' industrial domain expertise in product lifecycle and manufacturing processes. Altair’s current customers include manufacturing, life sciences, energy, and financial services companies, among others.
Significant Synergies and EPS Accretive
Altair shareholders will receive $113 per share, representing an enterprise value of approximately $10 billion. The offer price represents a 19 percent premium to Altair's unaffected closing price on October 21, 2024, the last trading day prior to media reports regarding a possible transaction.
The transaction will increase Siemens' digital business revenue by 8 percent, adding approximately EUR 600 million to Siemens' digital business revenue of EUR 7.3 billion as reported in fiscal year 2023. Siemens expects to achieve significant revenue synergies from cross selling the highly complementary portfolios and providing Altair full access to Siemens's global footprint and global industrial enterprise and customer base. The revenue impact of more than USD 500 million per year is forecast in the mid-term to grow to more than USD 1.0 billion per year, long-term. Siemens likewise aims to achieve cost synergies on a short-term basis, with an EBITDA impact of more than USD 150 million per year, by year two post-closing.
Closing of the transaction is subject to customary conditions and is expected within the second half of calendar year 2025.
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