Siemens takeover announcement $SIE (+0.56%)
$ALTR (+0.75%)
Summary
Acquisition price and value:
Siemens to acquire 100% of Altair Engineering for 113 USD per share which represents an enterprise value of approximately 10 billion USD is implied. This offer price corresponds to a 19 % premium to the unaffected closing price of Altair on October 21, 2024.
Financial impact:
The transaction is expected to be EPS (pre-PPA) accretive in the second year after closing. increasing and subsequently contribute significantly to earnings growth. Siemens expects significant cost synergies of over 150 million USD per year by the second year after closing. In addition, revenue synergies of an expected USD 500 million 500 million per year in the medium term, rising to more than USD 1 billion per year in the long term.
Strategic fit:
The acquisition is highly synergistic and enhances Siemens' position in the fast-growing PLM and EDA simulation market. It strengthens Siemens' comprehensive Digital Twin offering by adding Altair's capabilities in mechanical and electromagnetic simulation, data science and AI.
Financing:
The acquisition will be funded entirely in cash from Siemens' existing resources and is backed by the company's strong balance sheet and exceptional credit rating. The transaction is not subject to any financial conditions.
Timeline and conditions:
The transaction is expected to close in the second half of calendar year 2025, subject to customary closing conditions, including Altair shareholder approval and relevant regulatory approvals.
