**Siemens Bolsters Industrial Software Arsenal with $10 Billion Altair Engineering Acquisition**

In a significant move to enhance its standing in industrial software and artificial intelligence, Siemens has announced the acquisition of Altair Engineering Inc. The transaction, amounting to a substantial USD 10 billion, sees Altair shareholders receiving USD 113 per share, representing a 19% premium to Altair's unaffected closing price on October 21, 2024.

The integration of Altair, a global leader in computational science and AI software, is poised to solidify Siemens' position as a top technology entity. This acquisition will uniquely position Siemens by creating the world's most comprehensive AI-powered design and simulation portfolio. Roland Busch, President and CEO of Siemens AG, noted that this strategic investment aligns perfectly with Siemens' objective to expedite the digital and sustainability transformations for its customers by merging the real and digital spheres.

Ralf P. Thomas, CFO of Siemens AG, emphasized the synergistic benefits of the acquisition, stating that it underscores Siemens' capital allocation strategy aimed at balancing investments and shareholder returns. The acquisition is projected to be EPS (pre-PPA) accretive by the second year post-closing, reinforcing its financial viability.

Altair's founder and CEO, James Scapa, reflected on the company's journey, from a Detroit startup to a renowned software and technology powerhouse. He expressed confidence in the merger, pointing out the strong compatibility between Altair’s portfolio in simulation, data science, and high-performance computing with Siemens' expertise in mechanical and electronic design automation (EDA). Scapa highlighted the potential of combining Siemens' robust technology and strategic client relationships with Altair's innovative culture.

The addition of Altair's simulation portfolio, particularly in mechanical and electromagnetic capabilities, will significantly enhance Siemens' Digital Twin capabilities. This will enable a comprehensive, physics-based simulation suite within the Siemens Xcelerator program. Additionally, Altair's data science and AI-driven simulation tools will democratize access to simulation expertise, enabling a broader range of users to accelerate design iterations and improve time-to-market.

Financially, Siemens anticipates a significant boost to its digital business revenue by approximately EUR 600 million, representing an 8% increase from the EUR 7.3 billion reported in fiscal year 2023. Siemens expects notable revenue synergies, with potential cross-selling opportunities providing Altair with full access to Siemens' extensive global industrial customer base. These synergies are projected to yield more than USD 500 million per annum in the midterm, growing to over USD 1 billion per annum long-term. Cost synergies are expected to have an EBITDA impact of more than USD 150 million annually by the end of year one.

The acquisition will be funded with cash from Siemens' existing resources, leveraging the company's strong balance sheet, which has been bolstered by proceeds from the completed Innomotics divestment. The transaction, pending customary conditions, is slated for completion in the second half of 2025. This strategic move underscores Siemens' commitment to reinforcing its leadership in the industrial software sector and driving innovation through computational intelligence.