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1/25/2016 | 1 MINUTE READ

Siemens to acquire simulation software firm CD-adapco

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US-based CD-adapco makes simulation software for fluid dynamics, heat transfer, particle dynamics, electrochemistry, rheology and more.

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Siemens (Munich, Germany) and CD-adapco (Melville, NY, US) reported on Jan. 25 that they have entered into a stock purchase agreement for the acquisition of CD-adapco by Siemens. The purchase price is $970 million.

CD-adapco is a global engineering simulation company with software solutions covering a range of engineering disciplines including fluid dynamics (CFD), solid mechanics (CSM), heat transfer, particle dynamics, reactant flow, electrochemistry, acoustics and rheology. Last fiscal year, CD-adapco had more than 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.

“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,” says Klaus Helmrich, member of the Managing Board of Siemens.

CD-adapco simulation tools, led by the flagship product STAR-CCM+, reportedly allow engineers to discover better designs, faster. CD-adapco now has more than 3,200 customers worldwide and its software is currently used by 14 of the 15 largest carmakers, by all of the top 10 suppliers to the aerospace industry and by nine of the 10 largest manufacturers in the energy and marine sectors.

CD-adapco CEO and president Sharron MacDonald sas, “I am pleased for both the employees and the customers of CD-adapco. 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.”

CD-adapco 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 fiscal year 2016. CD-adapco will be integrated into the PLM software business of Siemens’ Digital Factory (DF) Division. 

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