Today Siemens AG in Germany announced plans Monday to acquire HPC software maker CD-adapco in a stock purchase agreement valued at $970 million.
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,” said Siemens managing board member Klaus Helmrich.
As a privately-held engineering software company, CD-adapco last year took in revenues close to $200 million, with double digit margins, according to Siemens. The U.S. firm provides computational fluid dynamics and computer aided engineering software.
The software firm has said it maintained 15% organic year-over-year growth over the last five years. It employs more than 900 staff at 40 locations world-wide.
CD-adapco will be integrated into Siemens’s profitable Digital Factory division, which produces industrial software and factory automation equipment. The unit, however, has come under pressure in recent quarters due to its strong exposure to the slowing Chinese economy.