Siemens AI deal is baby step to higher share price

Altair Engineering

31/10/2024 11:29

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are his own.)
    By Neil Unmack
       LONDON, Oct 31 (Reuters Breakingviews) - The German
trains-to-robot maker is buying simulation group Altair for $10
bln. The rich transaction will take years to pay off. But
Siemens’ fast-growing software unit gains scale. Shareholders
may give Siemens a higher valuation if CEO Roland Busch opts for
a bigger breakup.

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    CONTEXT NEWS
    Siemens on Oct. 30 said it would buy U.S. software group
Altair Engineering for $10 billion, after deducting the target
company's cash.
    Siemens will pay $113 dollars per share for Altair, a 19%
premium to its price on Oct. 21, before news of the deal first
emerged.
    Siemens said the deal would generate 150 million of cost
savings after two years, and up to $1 billion of revenue
synergies over the long term.
    Shares in Siemens were largely unchanged on Oct. 31.
     

 (Editing by Liam Proud and Katrina Hamlin)
 ((For previous columns by the author, Reuters customers can
click on  UNMACK/ 
neil.unmack@thomsonreuters.com))