Siemens (SIE) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition strengthens leadership in industrial software and AI, combining simulation, data science, and high-performance computing for comprehensive digital twin solutions.

• Altair's portfolio is highly complementary, expanding capabilities in mechanical, electromechanical, EDA, and AI-based simulation.

• The deal accelerates digital transformation and democratizes simulation, expanding access to design engineers and R&D generalists.

• Leverages Siemens' domain expertise and Altair's data science to drive digital transformation and sustainability across industries.

• Highly synergetic acquisition aligns with capital allocation strategy for sustainable value creation.

Financial terms and conditions

• 100% of Altair to be acquired for $113 per share, implying an enterprise value of $10 billion.

• Offer price represents a 19% premium to Altair's unaffected closing price on October 21, 2024.

• Transaction multiples: 14x FY2025 sales and 31x FY2025 Adjusted EBITDA, including near-term cost synergies.

• Fully cash-financed from Siemens' strong balance sheet and recent divestments; not subject to financing conditions.

• Closing expected in H2 2025, subject to customary conditions and Altair shareholder approval.

Synergies and expected cost savings

• Near-term cost synergies expected to exceed $150 million per annum by year two post-closing.

• Revenue synergies projected at $500 million midterm and over $1 billion long term, driven by cross-selling and expanded sales footprint.

• Significant synergies from cross-selling, Altair's access to Siemens' global customer base, and delisting Altair.

• Cost savings to come from delisting, IT and sales tool harmonization, real estate consolidation, and changes in executive compensation.