Siemens Expands Digital Footprint with $10.6 Billion Altair Deal

Siemens announced a $10.6 billion deal to acquire Altair Engineering, enhancing its presence in the industrial software sector. The acquisition marks Siemens' biggest purchase since 2020 and is expected to strengthen its digital industries division by adding AI-powered design and simulation capabilities.

Siemens has unveiled a $10.6 billion acquisition of U.S. engineering software firm Altair Engineering, aiming to bolster its stake in the burgeoning industrial software market. Analysts praise the strategic move despite concerns over the high purchase price for the Michigan-based company.

This acquisition represents Siemens' largest since its 2020 purchase of Varian Medical Systems for $16.4 billion. Analysts at Alpha Wertpapierhandel believe that, although costly, the deal will enhance Siemens' digital industries sector. Jefferies analyst Simon Toennessen notes the acquisition enriches Siemens with significant AI and high-performance computing expertise.

The purchase positions Siemens as a stronger competitor against firms like Synopsys, which is acquiring Ansys, and Cadence Design Systems. Siemens shares saw a slight drop, possibly in reaction to the acquisition cost. The deal supports Siemens's strategy of integrating real-world and digital solutions, potentially boosting digital business revenue by 8% over the coming years.

(With inputs from agencies.)