Siemens to acquire CD-adapco for $970M
German automation giant to meld simulation firm’s software into digital factory division.0
Siemens announced that it will acquire global engineering simulation company CD-adapco, via a stock purchase agreement, for $970 million. Last fiscal year, CD-adapco had over 900 employees and revenue of close to $200 million with software-typical double digit margins. On average, CD-adapco increased its revenue at constant currencies by more than 12 percent annually over the past three fiscal years. Siemens expects this business to continue to experience strong growth in the future.
“As part of its Vision 2020, Siemens is acquiring CD-adapco and sharpening its focus on growth in digital business and expanding its portfolio in the area of industry software,” said Klaus Helmrich, member of the managing board of Siemens. “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.”
Headquartered in Melville, New York, CD-adapco 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. CD-adapco will be integrated into the PLM software business of Siemens’ digital factory (DF) division. Closing of the transaction is subject to customary conditions and is expected in the second half of fiscal year 2016.