Read Kenneth’s Wong’s analysis of the acquisition here.
Siemens and CD-adapco have entered an agreement to have Siemens AG acquire CD-adapco. The developer of CFD (computational fluid dynamics) software, STAR-CCM+ and Multidisciplinary eXploration (MDX) has a purchase price of $970 million, the agreement states.
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% annually over the past three fiscal years. Siemens expects this business to continue to experience strong growth in the future.
According to a company press release, CD-adapco will be integrated into the PLM (product lifecycle management) software business of Siemens’ Digital Factory Division.
“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.
Closing of the transaction is subject to customary conditions and is expected in the second half of the 2016 fiscal year.
As we reported in September, CD-adapco’s Co-founder and President Steve MacDonald passed away after leading the company for 35 years.
For more information, visit Siemens.
Sources: Press materials received from the company and additional information gleaned from the company’s website.