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Altair Engineering Inc. (NASDAQ:ALTR), a provider of services and prepackaged software with annual revenue of $665.79 million and an impressive gross profit margin of 81.25%, announced on Monday the completion of its acquisition by Siemens (ETR:SIEGn) Industry Software (ETR:SOWGn) Inc., marking a significant change in control of the company. According to InvestingPro data, the company demonstrated solid growth with an 8.66% revenue increase in the last twelve months. The transaction, valued at approximately $9.7 billion, was finalized on March 26, 2025, with Altair now operating as a wholly owned subsidiary of Siemens.
The deal resulted in Altair’s shares ceasing to trade on the NASDAQ Global Select Market as of the close of the market on March 26, 2025, with plans to deregister the shares and suspend reporting obligations under the Securities Exchange Act of 1934. Altair’s common stockholders are entitled to receive $113.00 in cash per share, without interest, as the agreed merger consideration. The final trading price of $111.85 represented a significant 47.8% premium from the 52-week low of $75.71.
In connection with the acquisition, Altair has entered into a First Supplemental Indenture with U.S. Bank Trust Company, National Association, regarding its 1.750% Convertible Senior Notes due 2027. The merger triggers a Fundamental Change under the indenture, allowing note holders to convert their holdings into cash or require the company to repurchase the notes at a repurchase price of 100% of the principal amount, plus accrued interest.
As part of the merger agreement, certain compensatory arrangements were made for Altair’s equity award holders. Vested and certain unvested stock options and restricted stock units were converted into cash rights, while options with an exercise price equal to or above the merger consideration were canceled without payment.
This corporate reshuffle also led to the departure of Altair’s CEO, CFO, and COO, with Siemens Industry Software appointing new executives to these roles. The directors of the acquiring subsidiary have become the directors of the surviving corporation, effectively altering the company’s governance structure.
The amended and restated certificate of incorporation and bylaws for Altair, as stipulated by the merger agreement, have been filed with the SEC and are now in effect. This transaction represents a strategic move by Siemens to enhance its software offerings in the technology sector. Prior to the acquisition, InvestingPro analysis showed Altair maintained a strong financial health score of GOOD, with particularly robust growth metrics. For detailed insights into similar technology companies and their valuations, investors can access comprehensive Pro Research Reports covering 1,400+ US stocks through the InvestingPro platform.
The information in this article is based on a press release statement and provides a factual summary of the key events and financial implications of the acquisition without speculation or subjective assessment.
In other recent news, Altria Group (NYSE:MO) reported strong financial performance for 2024, with revenues rising 9% to €218 million and EBITDA increasing by 59% to €218 million. The company’s net profit doubled to €107 million, and it successfully reduced its net debt by 40% to €214 million. Altria Group’s strategic focus on cost management and leveraging market opportunities contributed to these results, supported by stable wood prices and decreasing chemical prices. Looking ahead, Altria anticipates stable cash costs for 2025 and plans capital expenditures between €50-60 million. The company expects to produce around 50,000 tons of dissolving pulp and foresees potential increases in pulp prices. Additionally, the Gamma Project is awaiting an environmental license, which could enhance growth prospects. Meanwhile, Cava Group and Angi Inc. are set to join the S&P MidCap 400 and S&P SmallCap 600 indices, respectively, reflecting ongoing market shifts. These changes are part of broader economic trends and company performance as observed by S&P Dow Jones Indices.
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