The German Federal Cartel Office has approved Siemens’ planned acquisition of Altair Engineering, a US-based company specializing in IT solutions for data analysis, artificial intelligence (AI), computer-aided engineering, and high-performance computing (HPC). Siemens announced the acquisition at the end of October.
According to the Cartel Office, both companies offer various software solutions in the area of Product Lifecycle Management (PLM) for designing and verifying products, including simulations and analyses in computer-aided engineering (CAE).
Andreas Mundt, President of the Federal Cartel Office, stated that in the PLM solutions sector, there are currently many acquisitions taking place. Although the acquisition of Altair by Siemens is among the largest, other competitors, both large and small, are active in the relevant market areas, which is why the project was approved.
The revenue volume of the affected PLM software market is estimated by the Cartel Office to be several billion dollars worldwide, with further growth expected. Siemens is one of the largest providers of industrial and particularly PLM software but remains in competition with other large providers of PLM and CAE solutions even after the merger.
Siemens is undergoing a significant transformation. The company is paying ten billion US dollars (9.2 billion euros) for Altair, which was founded in 1985. Demand for such software is expected to increase with the growing use of AI in daily life. Siemens anticipates an annual revenue increase of half a billion euros as a result of the acquisition. The transaction is expected to be completed between June and December 2025.
After the public listing of Healthineers and the spin-off of the energy technology company Siemens Energy, Siemens is increasingly focusing on its digitalization businesses and divesting from non-core areas. In early October, Siemens completed the sale of Innomotics, which deals with electric motors and large drives, for around 3.5 billion euros, with approximately 15,000 employees involved.
The company is also parting with its subsidiary Siemens Logistics, which specializes in airport baggage sorting systems. Siemens announced at the end of October that this subsidiary will be sold for 300 million euros to Vanderlande, a company that is part of the Japanese Toyota Group.
This strategic focus on digitalization and divestment from peripheral areas is part of Siemens’ broader effort to streamline its operations and focus on core growth areas. The acquisition of Altair is a significant step in this direction, expected to bolster Siemens’ capabilities in AI and data analysis, crucial areas for future technological advancements.
Overall, Siemens’ acquisition of Altair Engineering reflects a broader trend of consolidation in the software industry, particularly in areas related to digital transformation and AI. As companies seek to enhance their technological capabilities and remain competitive, such strategic acquisitions are likely to continue.