(Bloomberg) -- Siemens AG is in talks about a potential deal to acquire software maker Altair Engineering Inc., people familiar with the matter said, in what would be one of its largest-ever acquisitions.
The German engineering group is working with advisers as it discusses a move for Troy, Michigan-based Altair, according to the people, who asked not to be identified discussing confidential information.
Shares in Altair have risen 27% this year, giving the company a market value of $9.1 billion. The company is exploring a sale, the people said. Reuters reported this week that Altair was weighing a sale. The stock rose 3.5% on Wednesday.
Deliberations are ongoing and there’s no certainty that Siemens will decide to pursue a deal, the people said. Other bidders could also emerge for Altair, they said. Representatives for Altair and Munich-based Siemens declined to comment.
Led by Founder and Chief Executive Officer James Scapa, Altair provides engineering software to companies in the aerospace, automotive, energy and financial services industries, among others. Demand for such tools is expected to grow in lockstep with the increased adoption of artificial intelligence in everyday life.
Under CEO Roland Busch, Siemens has been exiting heavy equipment businesses and shifting to higher-margin, software-driven product lines to catch up to the profitability of automation peers like Rockwell Automation Inc. and Schneider Electric SE.
--With assistance from Liana Baker, Crystal Tse and Dinesh Nair.
(Updates trading in third paragraph)
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