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.
CD-adapco is a global engineering simulation company with a unique vision for Multidisciplinary Design eXploration (MDX). Engineering simulation provides the most reliable flow of information into the design process, which drives innovation and lowers product development costs. CD-adapco simulation tools, led by the flagship product STAR-CCM+, allow engineers to discover better designs, faster.
CD-adapco now has more than 3,200 customers worldwide. Its software is currently used by 14 of the 15 largest carmakers, by all of the top ten suppliers to the aerospace industry and by nine of the ten largest manufacturers in the energy and marine sectors.
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 an 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.—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.