Siemens to acquire simulation software supplier CD-adapco

The purchase price is USD 970 million. CD-adapco is a global engineering simulation company with software solutions covering a wide range of engineering disciplines including computational fluid dynamics, solid mechanics, heat transfer, particle dynamics, reactant flow, electrochemistry, acoustics and rheology. Last fiscal year, CD-adapco had over 900 employees and revenue of close to USD 200 million with software-typical double digit margins. On average, CD-adapco increased its revenue at constant currencies by more than 12% 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. Simulation software is key to enabling customers to bring better products to the market faster and at less cost. 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 is headquartered in Melville, New York, US, 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 subject to customary conditions and is expected in the second half of the year.