Altair Engineering, a prominent engineering software firm based in Troy, Michigan, is currently exploring a potential sale. The company, which has a market value of nearly $9 billion, has received acquisition interest and is working with investment bankers to gauge interest from potential suitors.
Some of the potential bidders include rival design software makers such as PTC and Cadence Design Systems. Altair's shares surged by over 14% following the news of the potential sale.
Founded in 1985, Altair provides a range of software solutions, including computer-aided engineering software that helps engineers design, analyze, and manufacture products. The company's founder, James Scapa, who also serves as the chairman and CEO, controls a significant portion of the voting stock.
Altair Engineering is exploring a potential sale primarily due to acquisition interest from several potential bidders. The company's strong market position, recent revenue growth, and attractive valuation have made it an appealing target for acquisition.
If the reported sales talks are successful, a deal could be signed in coming weeks, however a acquisition or sale transaction is not guaranteed and Altair may choose to stay independent.
Additionally, Altair's founder and CEO, James Scapa, controls a significant portion of the voting stock, which could facilitate the sale process.
The ongoing consolidation in the engineering software industry, driven by the need for advanced technologies and market expansion, is making Engineering Software Companies an attractive acquisition targets as investors bet on companies that could benefit from the boom in Artificial Intelligence (AI).
This year in January, chip-design company Synopsys agreed to buy design software firm Ansys in a deal worth about $35 billion. Later in Accenture has acquired Excelmax Technologies, a semiconductor design services provider based in Bengaluru, India.
Founded in 1985 by James R. Scapa, George Christ, and Mark Kistner in Troy, Michigan, Altair Engineering initially started as an engineering consulting firm. Over the years, it branched out into product development and computer-aided engineering (CAE) software. Some of its early software products, like HyperWorks, OptiStruct, and HyperMesh, became widely used in the automotive industry.
The latest version of HyperWorks 2023 includes exciting updates to physicsAI, which streamlines the process of training machine learning models from historical data.
In its most recent quarterly earnings report, Altair posted an 8% rise in software revenue to $135.4 million.
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