Altair Engineering stockholders approve proposed $10bn merger with Siemens

Altair Engineering Inc. stockholders have approved the proposed merger with Siemens Industry Software Inc., a subsidiary of Siemens AG, during a special meeting held on January 22, 2025. This critical vote paves the way for Siemens to acquire Altair in a $10 billion deal, strengthening its foothold in AI-powered design and industrial software solutions.

Under the terms of the agreement, Altair stockholders will receive $113 per share in cash, a 19% premium over the company’s unaffected closing price as of October 21, 2024. With this merger, Altair will delist from public stock exchanges, signaling a new chapter for the company as part of Siemens’ global technology ecosystem.

The final voting results will be filed with the U.S. Securities and Exchange Commission (SEC) in a Form 8-K, solidifying the legal framework for the transaction.

What Does This Merger Mean for Altair and Siemens?

The merger represents a strategic alignment of two industry leaders in computational intelligence and industrial software. Altair Engineering, renowned for its expertise in simulation, high-performance computing (HPC), and artificial intelligence (AI), will now operate under the Siemens umbrella, adding significant value to Siemens’ Xcelerator platform.

Altair’s solutions enable organizations across industries such as manufacturing, life sciences, and energy to optimize operations and make smarter decisions. By integrating these capabilities, Siemens aims to create the most comprehensive AI-powered design and simulation portfolio, advancing digital transformation and sustainability efforts for its global customer base.

Siemens CEO Roland Busch emphasized the strategic importance of the acquisition, stating, “This merger accelerates our mission to combine the physical and digital worlds, enabling smarter, faster, and more sustainable innovation across industries.”

Financial Details: What’s at Stake?

This $10 billion transaction is expected to boost Siemens’ digital business revenue significantly, adding over $600 million annually in the short term and potentially exceeding $1 billion annually in the long term. Additionally, Siemens anticipates realizing cost synergies of $150 million per year within two years post-closing.

The deal, which Siemens expects to be earnings-per-share (EPS) accretive by year two, will be fully funded through its existing cash reserves. Siemens’ recent divestment of its Innomotics business has strengthened its balance sheet, ensuring the company can maintain its robust financial standing while making this transformative investment.

Altair’s Legacy: A Milestone Moment

Founded in 1985 in Troy, Michigan, Altair Engineering Inc. has evolved into a global leader in computational intelligence, employing over 3,500 professionals, including 1,400 dedicated to research and development. The company went public in 2017, steadily building a reputation for its innovative solutions in simulation, AI, and data science.

James Scapa, Altair’s founder and CEO, reflected on the company’s journey, calling the merger “the culmination of nearly 40 years of growth and innovation.” Scapa emphasized that Siemens’ technological resources and strategic relationships would allow Altair to continue its mission of driving innovation and advancing computational intelligence.

Altair’s broad portfolio, particularly in mechanical and electromagnetic simulation, will enhance Siemens’ offerings in the industrial software market. By joining forces, the two companies are set to deliver cutting-edge solutions that improve design efficiency, reduce time-to-market, and support sustainability goals.

Why Is This Merger Significant for the Industrial Software Market?

The acquisition comes at a time when AI-powered design and simulation technologies are becoming critical for businesses navigating an increasingly connected and competitive landscape. Siemens’ decision to acquire Altair aligns with its strategy to expand its Digital Twin technology, offering customers comprehensive tools for end-to-end simulation and analysis.

This merger also highlights Siemens’ ongoing investment in industrial software leadership, reinforcing its position as a pioneer in combining digital and physical processes. The integration of Altair’s capabilities into Siemens’ portfolio is expected to set new benchmarks for innovation in manufacturing, life sciences, energy, and more.

What’s Next?

With stockholder approval secured, the merger now awaits regulatory clearances and other customary closing conditions. The transaction is expected to be finalized in the second half of 2025. Until then, Altair and Siemens will work collaboratively to ensure a smooth transition and prepare for the integration of their portfolios.

Upon completion, Altair will officially become part of Siemens’ technology ecosystem, marking a significant milestone for both companies and their customers. The combined entity will empower industries with advanced tools for simulation, data science, and AI-driven decision-making.

Future Prospects

The merger between Siemens and Altair signals a transformative moment in the evolution of industrial software. By combining their strengths, the two companies are positioned to lead the charge in advancing AI-powered design and simulation solutions for a sustainable future.

As digital transformation accelerates, this strategic alignment promises to deliver significant value to customers and shareholders alike, reinforcing Siemens’ role as a global leader in innovation and technology.