Siemens (SIEGY), the German engineering giant, is in negotiations to acquire Altair Engineering (ALTR, Financial), a software manufacturer based in Troy, Michigan. This move could be one of Siemens' largest acquisitions in history. Collaborating with advisors, Siemens is exploring the acquisition amid Altair's consideration of potential sales.
This year, Altair's stock (ALTR, Financial) has risen by 27%, bringing its market valuation to $9.1 billion. Reports earlier indicated that Altair is contemplating a sale, with its shares increasing by 3.54% as of the latest trading session. However, the outcome of the discussions remains uncertain and Siemens might not finalize the purchase. Additionally, other potential bidders for Altair could emerge.
Under the leadership of founder and CEO James Scapa, Altair provides engineering software to various industries, including aerospace, automotive, energy, and financial services. As artificial intelligence becomes increasingly integrated into daily life, the demand for such software tools is anticipated to grow significantly.
Siemens, led by CEO Roland Busch, has been shifting away from heavy equipment towards more lucrative software-driven products, aiming to enhance profitability similar to that of competitors like Rockwell Automation (ROK) and Schneider Electric. This strategic pivot aligns with Siemens’ broader transformation agenda aimed at improving its product offerings and financial performance.
