Takeover: Siemens buys US software company for 9.2 billion euros

Siemens wants to strengthen its software business with a billion-dollar takeover. The Munich-based group wants to take over the US-based Altair Engineering Inc. for around 10 billion US dollars (around 9.2 billion euros), as Siemens announced. According to an agreement signed by Siemens, Altair shareholders will receive $113 per share.

Altair offers industrial software for companies in the aviation, automotive, energy and financial services sectors. Demand for this is expected to increase as artificial intelligence (AI) becomes more widespread in everyday life.

Siemens boss Roland Busch spoke of a “significant milestone” for the group. “Altair’s capabilities in simulation, high performance computing, data science and artificial intelligence, together with Siemens Xcelerator, create the world’s most comprehensive AI-powered design and simulation portfolio.”

Siemens last completed a takeover of a similar size with Dresser-Rand in 2015. Back then for $7.6 billion including debt. However, it is surpassed by the takeover of the cancer specialist Varian by Siemens Healthineers for 16.4 billion dollars, which at that time was only a majority holding of Siemens after the IPO.

After the IPO of Healthineers and the spin-off of the energy technology group Siemens Energy, Siemens is increasingly concentrating on its digitalization businesses and separating from peripheral areas. Just a few weeks ago, the Munich-based company completed the sale of Innomotics. Siemens received around 3.5 billion euros for the business with electric motors and large drives with around 15,000 employees.

The purchase is expected to be completed in the second half of next year. Altair Engineering has around 3,500 employees.