MUNICH – Siemens has signed an agreement to acquire Altair Engineering for $113 per share, representing an enterprise value of approximately $10 billion.

The acquisition of the simulation software provider will increase Siemens' digital business revenue by 8%, adding around EUR600 million ($651 million) to its revenue of EUR7.3 billion ($7.9 billion) in fiscal year 2023, the company said, and providing Altair full access to its global footprint and customer base should have a revenue impact of more than $500 million per year in the mid term and more than $1 billion per year in the long term.

"Acquiring Altair marks a significant milestone for Siemens," said Roland Busch, President and CEO, Siemens, said in a release announcing the acquisition. "This strategic investment aligns with our commitment to accelerate the digital and sustainability transformations of our customers by combining the real and digital worlds. The addition of Altair’s capabilities in simulation, high performance computing, data science, and artificial intelligence together with Siemens Xcelerator will create the world's most complete AI-powered design and simulation portfolio."

"It is a logical next step: we have been building our leadership in industrial software for the last 15 years, most recently, democratizing the benefits of data and AI for entire industries," said Siemens CFO Ralf P. Thomas. "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."

Based in Troy, MI, Altair has more than 3,500 employees and specializes in software and cloud solutions for simulation, IoT, high-performance computing, data analytics and AI.

"This acquisition represents the culmination of nearly 40 years in which Altair has grown from a startup in Detroit to a world-class software and technology company," said James Scapa, Altair’s founder and CEO. "We have added thousands of customers globally in manufacturing, life sciences, energy and financial services, and built an amazing workforce, and innovative culture. 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. Siemens’ outstanding technology, strategic customer relationships, and honest, technical culture is an excellent fit for Altair to continue its journey driving innovation with computational intelligence."

Altair was reported to be seeking a sale after receiving acquisition interest earlier in October, with PTC and Cadence Design Systems reported as possible bidders in addition to Siemens.

The deal is expected to be completed in the second half of 2025, subject to customary conditions.