Siemens' Strategic Leap: Acquisition of Altair Engineering Spurs AI-Powered Revolution

Siemens is acquiring U.S. firm Altair Engineering for $10.6 billion to enhance its position in the industrial software market. Altair specializes in product lifecycle management and Siemens aims to increase its market share notably. The acquisition aligns with Siemens' digital focus and is expected to boost revenues.

Siemens is set to acquire U.S.-based Altair Engineering for a hefty $10.6 billion, marking its second-largest acquisition to date. This strategic move aims to reinforce Siemens' standing in the dynamic industrial software market, which continues to evolve under the influence of data analytics and artificial intelligence.

Altair, headquartered in Michigan, plays a significant role in the product lifecycle management (PLM) industry, which handles everything from a product's inception to its ultimate disposal. Estimates value the PLM simulation software market at $10 billion annually, with expectations of a 10% growth rate over the upcoming five years.

Following the acquisition, Siemens hopes to elevate its market share from 9% to 15%, climbing in rank to number two, just behind Ansys. CEO Roland Busch highlighted the merger's potential to create an unparalleled AI-powered design and simulation portfolio. The move is expected to enhance Siemens' earnings per share by 2027.