American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

Siemens to acquire Altair Engineering for $10.6B, strengthening industrial software division

by admin October 31, 2024
October 31, 2024
Siemens to acquire Altair Engineering for $10.6B, strengthening industrial software division

Siemens AG, Germany’s industrial powerhouse, is acquiring US-based Altair Engineering in a $10.6 billion deal, marking Siemens’ biggest acquisition since 2020.

Siemens aims to bolster its industrial software division by integrating Altair’s advanced simulation software, which predicts product performance in real-world scenarios.

The acquisition aligns with Siemens’ strategy to enhance its digital capabilities beyond traditional industrial operations, reinforcing its focus on combining digital and physical systems to streamline processes in factories, trains, and buildings.

The transaction is anticipated to add to Siemens’ earnings within two years post-closing, expected in the latter half of 2025.

With Altair’s simulation technology, Siemens expects an 8% boost in its digital business revenue in fiscal 2023, which equates to roughly €600 million.

The acquisition’s longer-term outlook projects $500 million in annual revenue, potentially doubling to over $1 billion as demand for industrial software grows.

Altair’s software will enhance Siemens’ ability to help manufacturers test products digitally, aiding industries like automotive, aerospace, and consumer goods in accelerating product development.

Siemens-Altair Engineering deal

The $113 per-share acquisition price represents an 18.7% premium to Altair’s share price as of October 21, before the news of its potential sale.

The premium underscores Siemens’ commitment to advancing its presence in the industrial software sector, valued at $21.5 billion globally.

Altair’s acquisition will help Siemens compete more effectively against industry giants like Rockwell Automation, Emerson Electric, and ABB, strengthening its foothold in the industrial software market.

As Siemens seeks to increase its market share in industrial automation, Altair’s strong US presence offers strategic value.

Siemens’ CEO Roland Busch has indicated that the company intends to expand its software and digital offerings in the US to balance out weakened performance in the Chinese market.

Siemens CFO Ralf Thomas, in a recent interview, highlighted software acquisitions as a means to grow Siemens’ automation business, particularly in the United States, where demand for smart manufacturing solutions is rising.

Altair’s software aligns with Siemens’ strategy to combine hardware with cutting-edge software, enhancing the efficiency of Siemens’ production lines, infrastructure, and transport solutions.

Siemens’ focus on factory automation and digital transformation is expected to be significantly strengthened by Altair’s product suite, offering manufacturers advanced capabilities to simulate and test products before they reach the market.

This acquisition also supports Siemens’ broader vision of enabling a “digital-physical convergence” across its products and services.

The transaction is expected to contribute to Siemens’ earnings per share (EPS) by 2027, two years after the deal’s anticipated close in 2025.

This timeframe reflects Siemens’ focus on long-term profitability through investments in digital transformation and industrial automation.

Altair’s technology will be instrumental in Siemens’ digital push, allowing the company to capture a larger share of the $21.5 billion industrial software market.

The post Siemens to acquire Altair Engineering for $10.6B, strengthening industrial software division appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
IEP stock: No good reason to invest in Icahn Enterprises
next post
Jack Dorsey announces mass layoffs at Tidal, aims to ‘build like a startup again’

Related Posts

Uber stock price analysis: buy the Tesla robotaxi...

May 30, 2025

AMD stock price analysis after the $245 billion...

April 17, 2025

Yua Mikami’s meme coin sheds over 80% in...

May 8, 2025

How America Inc is boosting security spending after...

April 28, 2025

What American Express earnings reveal about US consumer...

January 25, 2025

Ascension Health, largest Catholic hospital chain in the...

May 11, 2024

JetBlue stock price pattern points to a 55%...

January 27, 2025

Robinhood launches high-risk margin trading in UK following...

October 21, 2024

Trade war risks: retaliatory tariffs on the US...

February 4, 2025

US markets slide as Trump’s tariffs rattle investors;...

February 1, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • GMS stock jumps 29% on takeover interest from Home Depot, QXO, analysts raise PTs

      June 22, 2025
    • Japan’s rice price surge: what’s driving it and why it could spark a political crisis

      June 22, 2025
    • BofA raises STOXX 600 target amid resilient global growth, warns on Mideast risks

      June 22, 2025
    • Palantir co-founder: US must prevent Iranian nukes

      June 22, 2025
    • Fed governor Waller advocates for July rate cut amid tariff, labor market outlook

      June 21, 2025

    Categories

    • Business (3,189)
    • Investing (2,528)
    • Latest News (2,000)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved