Siemens Eyes More Software Acquisitions

ZURICH (Reuters) – Siemens has the financial capability for further software acquisitions after its $10.6 billion purchase of the U.S. industrial software company Altair, managing board member Cedrik Neike stated.

> "This was definitely not the last acquisition we make in the area of software," Neike told the German newspaper Handelsblatt in an interview published on Friday.

> "We have the financial strength to be able to do further deals. The software business is an important driver for growth and profitability."

The Altair acquisition was the second-largest in Siemens’s history, bolstering the engineering group's position in the expanding market for industrial software.

Neike, who oversees Siemens Digital Industries factory automation business, defended the price paid for Altair, which Siemens acquired for a multiple of 14 times 2025 estimated sales and 25 times estimated operating profit. The price represented an 18.7% premium to Altair's close on October 21, prior to the initial reports about the sale.

> "It is a diamond, a unique opportunity," Neike commented.

He noted that the market for industrial software, particularly in the area of simulation, is highly consolidated.

> "In simulation, Altair is very strong in the United States, and we are very strong in Asia and Europe. We can increase growth through cross-selling."

Currently, Altair is increasing its sales at a rate of 12%, which Siemens aims to enhance, Neike added.