On November 1, 2024, Siemens (SIEGn.DE) confirmed its capability for further software acquisitions following its $10.6 billion purchase of U.S.-based industrial software firm Altair (ALTR.O). Cedrik Neike, managing board member at Siemens, stated in an interview with Handelsblatt that the Altair acquisition would not be Siemens’ last, emphasizing the company's financial strength to pursue additional deals in the software space.
The Altair purchase is Siemens' second-largest acquisition to date and aims to enhance its position in the growing industrial software market, particularly in simulation. The acquisition was made at a premium, with Siemens paying 14 times Altair's estimated 2025 sales and 25 times its estimated operating profit, an 18.7% premium over Altair’s share price on October 21, before reports of a potential sale emerged.
Neike described Altair as a “diamond” and noted its complementary market presence, with Altair’s stronghold in the U.S. aligning well with Siemens' influence in Asia and Europe. Siemens intends to boost Altair’s current 12% sales growth rate by capitalizing on cross-selling opportunities in simulation and factory automation, which are critical for Siemens’ software-driven growth strategy.
This acquisition underscores Siemens’ focus on expanding its software business, a key driver for both growth and profitability in the industrial sector.
