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Siemens approaches largest ever acquisition via 10 billion loan

Siemens approaches largest ever acquisition via 10 billion loan

A bridge loan of $10.5 billion (€10 billion) should enable Siemens to acquire software maker Altair Engineering.

The loan is the next step after earlier acquisition announcements. Siemens is eyeing Altair because of its software solutions for industrial simulation, high-performance computing, data science, and AI. The software is popular in sectors such as aerospace, automotive, financial services, and energy. Siemens plans to integrate the technology with its Xcelerator platform, which is used to optimize industrial processes. Although Siemens is traditionally known for its hardware solutions, it is expanding into the industrial software market.

According to Bloomberg sources, the loan was made through 10 relationship banks. Goldman Sachs played a special role in this by fully underwriting the loan and providing additional guarantees.

For Altair shareholders, there is an offer of $113 per share. The transaction is not expected to close until deep into 2025. Although the loan removes a significant financial hurdle, other steps are required, including approval from market regulators. If completed, it will be Siemens’ largest acquisition ever, surpassing previous acquisitions such as Brightly ($1.5 billion) and Dutch Mendix ($730 million).

Siemens has not confirmed Bloomberg’s reporting so far.

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