Siemens Acquires CD-adapco

Siemens AG (Munich, Germany) has entered into a stock purchase agreement for the acquisition of CD-adapco (Melville, NY). The purchase price is $970 million. CD-adapco is a global engineering simulation company with software solutions covering a wide range of engineering disciplines including Computational Fluid Dynamics (CFD), Computational Solid Mechanics (CSM), heat transfer, particle dynamics, reactant flow, electrochemistry, acoustics and rheology. Last fiscal year, they had over 900 employees and revenue of close to $200 million with software-typical double digit margins. On average, the company 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 our Vision 2020, we are acquiring CD-adapco and sharpening our focus on growth in digital business and expanding our portfolio in the area of industry software. Simulation software is key to enabling customers to bring better products to the market faster and at less cost. 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, a member of the managing board of Siemens.

CD-adapco is a global engineering simulation company with a unique vision for Multidisciplinary Design eXploration (MDX). Engineering simulation provides the most reliable flow of information into the design process, which drives innovation and lowers product development costs. Their simulation tools, led by the flagship product STAR-CCM+, allow engineers to discover better designs, faster. They now have over 3,200 customers worldwide. The software is currently used by 14 of the 15 largest carmakers, by all of the top ten suppliers to the aerospace industry, and by nine of the ten largest manufacturers in the energy and marine sectors.

“I am pleased for both our employees and our customers. 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,” stated Sharron MacDonald, the president and chief executive officer of CD-adapco.

CD-adapco has 40 locations worldwide and 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 subject to customary conditions and is expected in the second half of fiscal year 2016. They will be integrated into the PLM software business of Siemens’ Digital Factory (DF) Division, an industry leader in automation technology and a leading provider of Product Lifecycle Management (PLM) software.

“By adding advanced engineering simulation tools such as CFD to our portfolio and experienced experts in the field to our organization, we’re greatly enhancing our core competencies for model-based simulation that creates a very precise digital twin of the product,” noted Anton Huber, the chief executive officer of Siemens Digital Factory Division.

The Digital Factory Division bundles all Siemens’ businesses serving the discrete manufacturing sectors – for example, car and aircraft construction, machine construction and electronics. Its portfolio includes high-performance, fully integrated software and hardware technologies for implementing seamless data-technical links between development, production and suppliers. Siemens is currently the only company offering technologies that comprehensively merge the virtual world of product development and the real world of manufacturing. New products can be designed, tested and optimized on the computer, while the corresponding production processes are already being planned and implemented. As a result, customers profit from enhanced efficiency, greater flexibility and faster market readiness

www.siemens.com, www.CD-adapco.com