Munich—Siemens announced Monday plans to acquire software supplier CD-adapco for $970 million.
CD-adapco is a global engineering simulation company with software solutions covering a wide range of engineering disciplines including Fluid Dynamics (CFD), Solid Mechanics (CSM), heat transfer, particle dynamics, reactant flow, electrochemistry, acoustics and rheology. Last fiscal year, CD-adapco had over 900 employees and revenue of close to $200 million with software-typical double digit margins.
“As part of its Vision 2020, Siemens is…sharpening its focus on growth in digital business and expanding its portfolio in the area of industry software. With CD-adapco, we’re acquiring an established technology leader that will allow us to supplement our world-class industry software portfolio and deliver on our strategy to further expand our digital enterprise portfolio,” said Klaus Helmrich, member of the Managing Board of Siemens.
CD-adapco simulation tools, led by the flagship product STAR-CCM+, allow engineers to discover better designs, faster. CD-adapco now has over 3,200 customers worldwide, including 14 of the 15 largest carmakers, all of the top ten suppliers to the aerospace industry and nine of the ten largest manufacturers in the energy and marine sectors.
CD-adapco CEO and President Sharron MacDonald said, “The opportunities that come with the acquisition by Siemens are endless. The vision of our founders will be realized in the integration of these world-class engineering and manufacturing technologies and a business strategy that will allow engineering simulation to impact more products and companies than ever before.”
CD-adapco will be integrated into the PLM software business of Siemens’ Digital Factory (DF) Division. The Digital Factory Division bundles all Siemens’ businesses serving the discrete manufacturing sectors – for example, car and aircraft construction, machine construction and electronics.
CD-adapco is headquartered in Melville, New York, U.S., and has 40 locations worldwide. Siemens expects synergy impact on EBIT to be in the mid-double-digit million range within five years of closing, mainly from revenue.
Closing of the transaction is expected in the second half of fiscal year 2016.
Tagged with tED