Dive Brief:
- Siemens AG acquired Troy, Michigan-based Altair Engineering in an effort to expand its industrial software portfolio and artificial intelligence capabilities, the automation manufacturer announced this week.
- The German multinational group on Wednesday said it completed the $10 billion deal, allowing Siemens to leverage Altair’s advanced simulation technology for its digital twin tool Xcelerator.
- The acquisition is part of Siemens’ “One Tech Company” program launched last year with the aim of growing its digital revenues through investments in AI-enabled products and connected hardware.
Dive Insight:
As manufacturers look to embed advanced technologies into their day-to-day operations, Siemens is positioning itself as a major resource with extensive AI-powered tools.
The acquisition of Altair will strengthen Siemens’ industrial software business, which has been on a growth trajectory since 2007, President and CEO Roland Busch said at a November press conference. It also underscores the company’s commitment to its “One Tech Company” program focused on improving internal processes and accelerating digital investments.
“With its full-suite simulation and AI portfolio, Altair will boost our comprehensive digital twin to the next level,” Busch said in remarks. This is Siemens’ largest acquisition to date, he said.
Altair will expand Siemens’ digital offerings for its customers with new capabilities in mechanical and electromagnetic simulation, high-performance computing, data science and AI, according to a news release.
“All our businesses are working to expand and promote the Siemens Xcelerator Portfolio,” Busch said in November. “The integration of Altair Engineering will further boost the share of our digital revenue.”
In addition to Altair, Siemens is targeting smaller businesses with the recent acquisitions of Trayer Engineering Corporation, a California-based switchgear manufacturer, and Denmark-based fire suppression firm Danfoss Fire Safety.
The multinational company is also selling its airport logistics business to Toyota Industries subsidiary Vanderlande and is looking to divest most of its wind business in India and Sri Lanka. It opened two facilities in California and Texas earlier this month as the company focuses on AI-related investments in the U.S.
Altair, founded in 1985, began as a startup consulting firm for Detroit’s largest automakers, Crain’s Detroit business reported. It has since grown into a leading software and technology company with an emphasis in simulation, data science and high-performance computing. The company went public in 2017.
