Siemens AG has signed an agreement to acquire computer science and artificial intelligence leader Altair Engineering Inc.

The deal will solidify the German industrial conglomerate’s trajectory toward higher-margin, software-driven product lines.

According to an Altair press release, Altair shareholders will receive $113.00 per share in cash, representing an equity value of approximately $10.6 billion, or an offering price representing a premium of 19% from Altair’s unaffected closing price on October 21, 2024.

This acquisition marks an important step for Siemens, which has gradually evolved beyond its traditional industrial customers by strengthening its digital offering.

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“This strategic investment aligns with our commitment to accelerate our customers’ digital and sustainable transformations by combining the real and digital worlds,” said Roland Busch, President and CEO of Siemens AG. “Adding Altair’s capabilities in simulation, high-performance computing, data science and artificial intelligence with Siemens Xcelerator will create the most comprehensive AI-driven design and simulation portfolio in the world.

Busch called the acquisition a “logical next step” as the company has been investing in industrial software for 15 years.

The transaction was unanimously approved by Altair’s board of directors and is expected to be completed in the second half of 2025.

Based in Michigan Altaïr was founded in 1985 and is led by founder and CEO James Scapa. Altair provides engineering software (including AI, data analytics, high-performance computing and simulation) to companies in the aerospace, automotive, energy and financial services industries .

“We have added thousands of customers globally across manufacturing, life sciences, energy and financial services and have built an extraordinary workforce and innovative culture “, noted Scapa. “We believe this combination of two highly complementary leaders in engineering software brings together Altair’s broad portfolio in simulation, data science and HPC with Siemens’ strong position in mechanical design and EDA . Siemens’ exceptional technology, strategic customer relationships and honest technical culture are an excellent choice for Altair to continue its journey of driving innovation through IT intelligence.