“The addition of Altair’s capabilities in simulation, high performance computing, data science, and artificial intelligence together with Siemens Xcelerator will create the world’s most complete AI-powered design and simulation portfolio,” said Roland Busch, President and CEO of Siemens AG.

Software star Altair is being acquired by Siemens for a whopping $10.6 billion which Siemens says will create the world’s best AI-powered design and simulation technology company.

Roland Busch, President and CEO of Siemens AG, said the acquisition will drive customer digital and sustainability transformation by “combining the real and digital worlds.”

“The addition of Altair’s capabilities in simulation, high performance computing, data science, and artificial intelligence together with Siemens Xcelerator will create the world’s most complete AI-powered design and simulation portfolio,” said Busch in a statement.

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Busch said acquiring Altair is the “logical next step” for the German-based company. “We have been building our leadership in industrial software for the last 15 years, most recently, democratizing the benefits of data and AI for entire industries,” he said.

Troy, Mich.-based Altair is a global provider of software and cloud solutions in simulation, high performance computing (HPC), data analytics and AI. Its digital simulation software helps predict how products will work in the real world.

Market analysts at Alpha Wertpapierhandel said the acquisition of Altair will strengthen Siemens’ struggling digital industries division. “Altair adds AI-powered design and simulation,” Alpha said in a report today. “All in all, longer term, this seems to be a good deal for Siemens.”

Details Of The Acquisition

Siemens agreed to buy Altair for $113 per share in cash with the total deal value being $10.6 billion. The deal represents a 19 percent premium to the closing price of Altair shares on Oct. 21, when news reports first surfaced of the acquisition.

Siemens expects to close its acquisition of Altair in the second half of 2025.

Siemens said the transaction will have a positive revenue impact of about $500 million per year in the mid-term and more than $1 billion per year in the long term.

James Scapa, Altair’s founder and CEO, said the acquisition represents the culmination of nearly 40 years in which Altair has grown from a startup to a world-class software and technology company.

“We believe this combination of two strongly complementary leaders in the engineering software space brings together Altair’s broad portfolio in simulation, data science, and HPC with Siemens’ strong position in mechanical and EDA design,” said Scapa in a statement. “Siemens’ outstanding technology, strategic customer relationships, and honest, technical culture is an excellent fit for Altair to continue its journey driving innovation with computational intelligence.”

Altair’s stock is down 4 percent in pre-market trading, currently at $108.63 per share as of Thursday morning. Siemens stock price is flat in pre-market trading at $97.30 per share.