TROY, Mich. - Altair (NASDAQ:ALTR), known for its computational intelligence software, has agreed to a buyout by Siemens AG (OTC:SIEGY), the German industrial giant. The all-cash transaction is set at $113.00 per Altair share, totaling an equity value of about $10.6 billion. This offer is a 19% premium over Altair's closing stock price on October 21, 2024, before buyout rumors, and a 13% premium over its highest closing price to date.
James Scapa, Altair's CEO, described the acquisition as the peak of Altair's nearly four-decade journey from a Detroit startup to a global technology firm. He emphasized the synergy between Altair's expertise in simulation, data science, and high-performance computing (HPC) and Siemens' capabilities in mechanical and electronic design automation (EDA) software.
Siemens' President and CEO, Roland Busch, noted the strategic nature of the acquisition, stating that it complements Siemens' digital transformation goals for its customers. He highlighted that integrating Altair's technologies with Siemens Xcelerator portfolio will create a leading AI-powered design and simulation offering.
The agreement, approved by Altair's Board of Directors, is anticipated to be finalized in the second half of 2025, pending regulatory and Altair stockholder approvals, along with other customary closing conditions. Following the acquisition, Altair will become a private company, and its shares will be delisted from public stock exchanges.
In conjunction with this announcement, Altair released its third-quarter financial results for 2024. However, the company has canceled its earnings call that was scheduled for later today.
Citi and J.P. Morgan Securities LLC are acting as financial advisors, while Davis Polk & Wardwell LLP and Lowenstein Sandler LLP are legal advisors to Altair in this transaction. This article is based on a press release statement.
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