Siemens has signed an agreement to acquire Altair Engineering, a provider of industrial simulation and analysis software. The acquisition is to be carried out by purchasing Altair shares. Siemens will spend around ten billion dollars on the deal. The purchase is intended to strengthen the company's position as a leading technology company and its leading role in the field of industrial software.

Accelerated design iterations and shorter time to market

Altair's simulation portfolio is highly complementary. In particular, its strong capabilities in mechanical and electromagnetic simulation expand Siemens' comprehensive digital twin. This enables the company to offer a complete, physics-based simulation portfolio as part of Xcelerator. Altair's data science and AI-powered simulation capabilities enable everyone from engineers to business analysts to work with simulation tools, accelerating design iterations and reducing time to market. In addition, Altair's data science capabilities will further accelerate the utilization of industry expertise in product lifecycles and manufacturing processes.

Siemens expects significant synergies and revenue increases

The transaction is expected to significantly increase revenue in Siemens' digital business by eight percent. This will enable the company to increase reported revenue in its digital business by approximately €600 million in fiscal 2023. With a mid-term revenue run-rate impact of more than $500 million per year, expected to grow to more than $1 billion per year in the long term, the manufacturer expects significant revenue synergies, particularly through cross-selling of the highly complementary portfolios and through Altair's full access to Siemens' global presence and global industrial and customer base.