Siemens Acquires Altair Engineering for $10.6B, Becoming AI Simulation Leader
Siemens has acquired Altair Engineering for $10.6 billion, marking the second-largest acquisition in the company's history. The digital deal, set to complete in the second half of 2025, positions Siemens as the world's leading AI and simulation company.
Siemens financed the mega-deal entirely from its own resources, using funds from the sale of Innomotics and listed equity holdings. The acquisition of Altair Engineering, a leader in simulation software, expands Siemens' digital business by 8%, with revenue increasing to €7.9 billion.
The combined company offers the world's most comprehensive AI-supported design and simulation portfolio, making high-complexity simulation expertise accessible to non-experts. Siemens gains access to complementary simulation portfolios, strengthening its mechanical and electromagnetic areas. The market for PLM simulation software is expected to grow at a rate of 10% per year, with Siemens now the clear market leader.
The acquisition is expected to generate significant synergies. In the medium term, it is set to bring over $500 million in annual revenue synergies, rising to over $1 billion in the long term. Siemens expects to achieve over $150 million in EBITDA increase in the second year after the acquisition, with EPS growth from the second year onwards.
The acquisition of Altair Engineering, Siemens' second-largest deal, signals a shift from a traditional industrial conglomerate to a tech leader. CEO Roland Busch sees this move as accelerating Siemens' digital transformation and bridging the gap between the real and digital worlds.
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