Altair Engineering Inc. (ALTR.O), a Michigan-based engineering software company valued at nearly $9 billion, is reportedly exploring a potential sale following expressions of acquisition interest, according to three sources familiar with the situation.
The company, headquartered in Troy, is collaborating with investment bankers to assess the interest from possible buyers, the sources revealed, speaking on condition of anonymity due to the confidential nature of the discussions. If negotiations proceed positively, a deal could materialize in the coming weeks; however, it remains uncertain as Altair may opt to maintain its independence.
Following reports of the sale discussions, Altair’s shares surged over 14% on Tuesday. Potential suitors are said to include competitors in the design software sector, notably PTC (PTC.O) and Cadence Design Systems (CDNS.O). However, it is unclear if either company has formally approached Altair regarding a purchase.
Both Altair and Cadence have yet to respond to inquiries for comments, while PTC declined to provide any statement.
The growing interest in engineering software firms has been fueled by the rising demand for technologies poised to benefit from the artificial intelligence boom. Earlier this year, chip-design giant Synopsys (SNPS.O) announced a $35 billion acquisition of design software company Ansys, and Bentley Systems (BSY.O), a competitor of Altair, held discussions with Schneider Electric (SCHN.PA) that ultimately did not lead to a deal.
Founded in 1985, Altair specializes in a variety of software solutions, including computer-aided engineering tools that assist engineers in the design, analysis, and manufacturing processes. Its simulation software is particularly noted for predicting product performance in real-world conditions.
James Scapa, the founder and current chairman and CEO of Altair, controls 53.42% of the company’s voting stock through dual-class shares, as detailed in recent regulatory filings.
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