Germany’s Siemens has completed the acquisition of software and tech company Altair Engineering Inc. in a deal Siemens has said has an equity value of $10.6 billion, the company said March 26.

As part of the deal, Siemens acquired outstanding shares of Altair's common stock for $113 per share in cash, Michigan-based Altair said Jan. 22. Altair's securities will no longer be listed on any public stock exchange.

With the acquisition, Siemens said it will expand its simulation and industrial artificial intelligence (AI) capabilities in mechanical and electromagnetic simulation, high-performance computing (HPC) and data science.

The Altair team and technology will further enhance the company’s digital twin simulation services, making them more accessible for companies to bring complex products to market faster.

Siemens has been shedding other parts of its business, including a December divestiture by Siemens Gamesa’s power electronics business to ABB, as it focuses on core businesses.

"Adding Altair's groundbreaking innovations to the Siemens Xcelerator platform will create the world's most complete AI-powered design, engineering and simulation portfolio. Together, we will help our customers to innovate at the scale and speed that today's complexity-driven world demands," said Roland Busch, president and CEO of Siemens AG. "Through the ONE Tech Company program, we will extend our leadership in industrial software. This enables all industries to benefit from the revolution driven by data and AI."

Siemens said customers—from engineers to generalists—will have access to new simulation expertise that can optimize their high-performance computing processes, create new AI tools and perform data analytics to help accelerate innovation and digital transformation.  

The Altair acquisition is part of Siemens' ONE Tech Company program and will “meaningfully increase Siemens' digital revenue share,” the company said.

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“This growth program enables Siemens to further expand its strong market position and reach the next level of performance and value creation,” the company said. “Through acquisitions like this, as well as R&D investments into areas including software, AI-enabled products, connected hardware and sustainability, Siemens is clearly prioritizing capital allocation to strategic growth fields.”

With the Altair acquisition and recent expansions of Siemens' factories in California and Texas, Siemens has now invested more than $100 billion in the U.S. in the past 20 years.

Citi and J.P. Morgan Securities LLC served financial advisers to Altair, and Davis Polk & Wardwell LLP and Lowenstein Sandler LLP served as the company’s legal advisers.  

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