2024-10-30 22:12:00
The German group Siemens announced on Wednesday the acquisition of the software specialist Altair Engineering, valuing the American company around ten billion dollars, with the objective of strengthening its position in simulation and artificial intelligence applied to industry.
“Siemens strengthens its leadership position in industrial software and AI with the acquisition of Altair Engineering”indicates a press release from the Munich group, which highlights the skills of the American manufacturer “in the areas of simulation, high performance computing, data science and artificial intelligence”.
With this acquisition, one of the largest in its history, the German conglomerate, which manufactures trains, turbines and digital solutions, wants to accelerate its transformation into a company focused on technology and digital tools. The division “digital industry” which notably includes software for industry and factory automation (robotization of production processes) has become the engine of the group’s growth in recent years.
“Important milestone”
“The acquisition of Altair is an important step for Siemens”underlines the boss of the German giant Roland Busch in a press release. “This strategic investment is in line with our commitment to accelerate our customers’ digital and sustainable transformation by connecting the real and digital worlds”he continues, assuring that the transaction will give rise to “to the world’s most comprehensive AI-driven design and simulation portfolio.”
“Altair shareholders will receive $113 per share, which corresponds to an enterprise value of approximately $10 billion (€9.2 billion),” specifies Siemens. The transaction is expected to result in an 8% increase in Siemens’ digital business revenue and will increase digital business revenue by approximately €600 million for the 2023 financial year, with an effect on turnover of more than $500 million per year in the medium term, which is expected to exceed one billion dollars per year in the long term.
Altair Engineering presents itself as “a global leader in the field of computer science and artificial intelligence”founded in 1985 and listed on the Nasdaq stock exchange in 2017. The company is headquartered in Troy, Michigan (United States) and employs more than 3,500 people compared to some 320,000 employees worldwide for Siemens.
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**Interview with David Klein, Industry Analyst at Tech Insights**
**Interviewer:** Thank you for joining us today, David. Siemens recently announced its acquisition of Altair Engineering for approximately ten billion dollars. How significant is this move for Siemens and the industry as a whole?
**David Klein:** Thank you for having me. This acquisition is indeed a notable strategic maneuver for Siemens. It positions them to enhance their capabilities in simulation and artificial intelligence. The industrial software market is rapidly evolving, and integrating Altair’s expertise will allow Siemens to stay competitive and innovate more effectively.
**Interviewer:** What specific strengths does Altair Engineering bring to Siemens that will benefit their digital transformation efforts?
**David Klein:** Altair is well-regarded for its prowess in high-performance computing, data science, and sophisticated simulation technologies. By acquiring Altair, Siemens gains access not only to advanced software tools but also to a highly skilled workforce. This will help Siemens streamline its processes, improve product design, and enhance operational efficiency across industries such as manufacturing and energy.
**Interviewer:** This acquisition is noted as one of the largest in Siemens’ history. How might this impact their growth trajectory in the coming years?
**David Klein:** This is a game-changer for Siemens. The growth of their digital industry division has been remarkable, and this acquisition will likely accelerate that growth. By focusing on technology and digital solutions, Siemens is aligning itself with the future of industrial manufacturing, which is increasingly reliant on automation and AI. This could lead to new opportunities and expanding market share in an already competitive landscape.
**Interviewer:** Siemens describes this as an “important milestone.” What do you think this says about their vision for the future?
**David Klein:** It demonstrates a clear commitment to innovation and leadership in industrial technologies. Siemens understands that in order to remain a key player in the industry, particularly in automation and AI, they must invest in next-generation software capabilities. This acquisition signals a forward-looking approach, ensuring they remain at the forefront of digital transformation within the industrial sector.
**Interviewer:** Thank you for your insights, David. This acquisition will certainly be one to watch as it unfolds.
**David Klein:** Thank you for having me. I look forward to seeing how this strategic partnership develops.
