- Deal could be announced ahead of Siemens's AGM on Tuesday
- Siemens CEO Kaeser is seeking to expand software offering
Siemens AG is close to buying software-maker CD-adapco as Chief Executive Officer Joe Kaeser seeks to expand Europe’s largest engineering company’s offering in the lucrative product lifecycle management market, according to a person familiar with the discussions.
A deal to buy the Melville, New York-based company could be announced as soon as Monday, said the person who declined to be named because the talks are private. Reuters reported earlier that a deal could be valued at close to $1 billion. Representatives for Siemens and CD-adapco declined to comment.
The deal will help Kaeser draw attention to Siemens’s efforts in the software market at an annual shareholder meeting Tuesday in Munich as the declining crude price saps orders from within the oil and gas industry. He pledged in 2013 to double the number of software programmers within a decade from 17,000. By the end of last year, he had added 500 such engineers.
CD-adapco, which makes computer programs used to simulate engineering processes such as the workings of combustion engines, has annual revenue of about $181 million and more than 850 employees, according to its website. Siemens’s digital factory unit is the most profitable of its nine divisions, and was last significantly bolstered by the 680 million-euro ($736 million) acquisition of Belgian software maker LMS International in 2012.