Siemens Eyes Further Acquisitions Following Altair Purchase

Siemens, a global leader in industrial technology, has recently made headlines with its significant acquisition of Altair, a U.S. industrial software company, for a staggering $10.6 billion. This move marks a pivotal moment for Siemens as it seeks to strengthen its foothold in the rapidly expanding market for industrial software. The acquisition is not just a one-time event; according to Cedrik Neike, a managing board member at Siemens, the company is poised for more acquisitions in the software sector.

In an interview with a German newspaper, Neike emphasized, "This was definitely not the last acquisition we make in the area of software." He further elaborated that Siemens possesses the financial capability to pursue additional deals, highlighting the importance of the software business as a key driver for growth and profitability. The Altair acquisition stands as the second largest in Siemens's history, showcasing the company's commitment to enhancing its software offerings.

Neike defended the price paid for Altair, which was based on a multiple of 14 times the estimated sales for 2025 and 25 times the estimated operating profit. This price included an 18.7 percent premium over Altair's closing price on October 21, just before news of the potential sale broke. Neike pointed out that the industrial software market, particularly in the simulation sector, is highly consolidated. He noted, "In simulation, Altair is very strong in the United States, and we are very strong in Asia and Europe. We can increase growth through cross-selling." This strategy could potentially lead to a significant boost in sales for both companies.

Currently, Altair is experiencing a sales growth rate of 12 percent, a figure that Siemens aims to enhance further. This ambition reflects Siemens's broader strategy to leverage its resources and expertise to capitalize on the growing demand for industrial software solutions.

Siemens's acquisition of Altair not only signifies a major investment in the software sector but also sets the stage for future growth and expansion. As the industrial landscape continues to evolve, companies like Siemens are recognizing the critical role that software plays in driving innovation and efficiency. With plans for more acquisitions on the horizon, Siemens is clearly positioning itself to be a formidable player in the industrial software market, paving the way for exciting developments in the years to come.