Siemens, a German technology giant, has signed an agreement to acquire Altair Engineering, a US-based provider of software and cloud solutions for approximately $10bn (€9.2bn).

The acquisition will see Altair shareholders receive $113 per share, a 19% premium over the closing price on 21 October 2024, the last trading day before speculation of the deal surfaced.

Altair, a company specialising in computational science and artificial intelligence (AI), offers software and cloud solutions across various domains.

These include simulation and analysis, data science and AI, and high-performance computing.

This acquisition is expected to bolster Siemens' position as a technology company and further strengthen its industrial software capabilities.

Siemens said the addition of Altair's simulation portfolio, particularly in mechanical and electromagnetic capabilities, will enhance its digital twin offerings.

Siemens Xcelerator will now integrate a full-suite, physics-based simulation portfolio, providing comprehensive solutions to its customers.

Altair's simulation capabilities, powered by data science and AI, enable a broad range of users, from engineers to generalists, to harness simulation expertise.

This facilitates reduced time-to-market and accelerates design iterations.

Furthermore, Altair's data science expertise is expected to unlock new potential within Siemens' industrial domain knowledge, particularly in product lifecycle and manufacturing processes.

Founded in 1985 and having gone public in 2017, Altair is headquartered in Troy, Michigan, and employs more than 3,500 people, with around 1,400 dedicated to Research and development.

Siemens president and CEO Roland Busch said: “Acquiring Altair marks a significant milestone for Siemens. This strategic investment aligns with our commitment to accelerate the digital and sustainability transformations of our customers by combining the real and digital worlds.

“The addition of Altair’s capabilities in simulation, high performance computing, data science, and artificial intelligence together with Siemens Xcelerator will create the world's most complete AI-powered design and simulation portfolio.”

Altair founder and CEO James Scapa said: “This acquisition represents the culmination of nearly 40 years in which Altair has grown from a startup in Detroit to a world-class software and technology company.

“We have added thousands of customers globally in manufacturing, life sciences, energy and financial services, and built an amazing workforce, and innovative culture.”