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Siemens and CD-adapco 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 wide 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 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 percent 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, U.S., 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 fiscal year 2016.
CD-adapco will be integrated into the PLM software business of Siemens' Digital Factory (DF) Division. DF is the industry leader in automation technology and a leading provider of Product Lifecycle Management (PLM) software. "By adding advanced engineering simulation tools such as CFD to our portfolio and experienced experts in the field to our organization, we're greatly enhancing our core competencies for model-based simulation that creates a very precise digital twin of the product," said Anton Huber, CEO of the Digital Factory Division.
The Digital Factory Division bundles all Siemens' businesses serving the discrete manufacturing sectors – for example, car and aircraft construction, machine construction and electronics. Its portfolio includes high-performance, fully integrated software and hardware technologies for implementing seamless data-technical links between development, production and suppliers.