Siemens' Strategic Leap: Altair Acquisition Signals Digital Expansion

Siemens is set to acquire American engineering software firm Altair Engineering for $10.6 billion, aiming to enhance its industrial software capabilities. The deal positions Siemens to expand its digital offerings, targeting an 8% increase in digital business revenue and strengthening its presence in factory automation.

In a bold move to bolster its industrial software portfolio, Siemens announced its acquisition of American firm Altair Engineering for $10.6 billion. This strategic decision is part of Siemens's efforts to expand its digital services and enhance its presence in the rapidly growing industrial software market.

The transaction stands as Siemens's largest since the 2020 acquisition of Varian Medical Systems by Siemens Healthineers. Altair's simulation software plays a critical role in predicting real-world product performance, aligning with Siemens's strategy to integrate digital and physical realms.

Aimed at enhancing revenue by approximately 8% in its digital sector, the deal is projected to be accretive to earnings per share within two years of closure, anticipated in late 2025. Siemens seeks to reinforce its foothold in the U.S. market amid China's economic challenges, with the Altair acquisition epitomizing this strategic shift.

(With inputs from agencies.)