On October 30, 2024, Siemens announced its acquisition of Altair Engineering, a leading provider in the industrial simulation and analytics market, for approximately $10 billion at a price of $113 per share, marking a 19% premium over Altair's closing price prior to the announcement. This strategic move reinforces Siemens' position as a dominant technology player and solidifies its leadership in the industrial software sector.

Siemens AG's CEO, Roland Busch, highlighted that this acquisition aligns with the company's commitment to accelerating customers' digital and sustainability transformations by merging the physical and digital worlds. He emphasized that combining Altair’s strengths in simulation, high-performance computing, data science, and artificial intelligence with Siemens’ Xcelerator platform will create the world's most comprehensive AI-driven design and simulation product portfolio.

The acquisition is expected to enhance Siemens’ digital business revenue by over 8%, adding approximately €600 million to the €7.3 billion reported for the 2023 fiscal year. CFO Ralph P. Thomas remarked that this acquisition is a logical next step in Siemens’ 15-year journey to establish leadership in industrial software, ensuring that the benefits of data and AI are accessible across the industry.

Altair, founded in 1985 and publicly traded since 2017, specializes in software and cloud solutions for simulation and analytics, data science, and AI. Its portfolio includes tools like HyperWorks for structural analysis and SolidThinking for innovative product design. The company's recent acquisitions, including Metric Design Automation, reflect its strategy to expand its influence in the electronic design automation (EDA) sector.

In addition to Siemens’ acquisition of Altair, notable activity in the EDA sector includes Cadence's successive acquisitions of Invecas and BETA CAE Systems.  Another giant, Synopsys, made headlines by acquiring Ansys for a staggering $35 billion, setting a new industry record and garnering significant attention.

Meanwhile, Chinese EDA companies are catching up amid a global wave of mergers and acquisitions. Firms such as Empyrean, Semitronix, X-EPIC, Primarius, Rigoron, and S2C are actively pursuing acquisition strategies to enhance their technology offerings, boost core competitiveness, and expand market influence.

The deal will facilitate significant revenue synergies through the cross-selling of complementary products, with mid-term revenues expected to exceed $500 million and long-term revenues projected to surpass $1 billion. Siemens anticipates achieving over $150 million in cost synergies within two years post-transaction.

The acquisition is fully funded by Siemens’ existing resources and is expected to close in the second half of 2025, subject to customary conditions. This move not only enhances Siemens’ capabilities in mechanical and electromagnetic simulation but also strengthens its digital twin offerings, allowing for more effective engineering and design processes across various industries.