Siemens Makes Multibillion-Dollar Splash: Acquires Altair in 14 Trillion Won Deal to Revolutionize Industrial Simulation

software

Siemens acquires U.S. software company Altair for 14 trillion won… Expanding industrial simulation focus

Digital Daily Publication Date 2024-10-31 11:24:01

[디지털데일리 이상일기자] Siemens, a German global technology company, has decided to acquire American software company Altair for approximately $10.6 billion (approximately KRW 14.6174 trillion). This acquisition is interpreted as the fact that the simulation and data analysis software provided by Altair fits well with Siemens’ digitalization strategy.

Starting with the field of manufacturing simulation, Altair is helping companies make decisions across industries such as finance, healthcare, and high-tech, and helping them significantly reduce product production costs and time. This is expected to contribute to the physical and digital convergence promoted by Siemens.

This transaction was priced at $113 per Altair share, which is a premium of approximately 18.7% compared to the previous trading day of Altair stock. This acquisition is one of the largest software acquisitions in Siemens’ history and marks the expansion of Siemens’ digital portfolio. In particular, Siemens is expected to further strengthen its competitiveness in industrial automation and data analysis through the acquisition of Altair.

[ⓒ알테어]

In particular, Siemens’ acquisition of Altair is expected to intensify competition with Rockwell Automation, Emerson Electric, and ABB.

According to market research, the industrial software market is worth $21.5 billion annually and is expected to reach about $46.6 billion by 2029 due to the growth of artificial intelligence (AI) and data analysis technology. This is because manufacturers are actively pursuing digitalization to improve productivity and reduce costs.

Siemens CEO Roland Busch said, “This acquisition will be an important milestone in the expansion of Siemens’ software business,” emphasizing the company’s commitment to strengthening its industrial software and digitalized services sectors.

Meanwhile, Altair also has large domestic manufacturing companies such as Samsung Electronics and LG Electronics as customers.

Copyright ⓒ Digital Daily. Reproduction and redistribution prohibited.