Siemens weighs acquisition of software developer Bentley Systems
08 September, 2020
Siemens is weighing an acquisition of Bentley Systems, according to persons familiar with the matter, in what would mark a brand new push into industrial-software dealmaking by Europe’s greatest engineering firm.
Bentley, if purchased, would become part of Siemens’s digital industries division, the persons said, asking never to be identified as the info is private. No final decisions have already been made and a deal could still neglect to materialise, the persons said.
A spokesperson for Siemens declined to comment. A representative for Bentley did not immediately respond to requests for comment. Siemens shares rose just as much as 1.6 % to €117.60 (Dh510.38) in intraday trading Monday.
Bentley, based in Exton, Pennsylvania, develops software to help manage engineering projects, particularly in the infrastructure and construction industries. The company has more than 3,500 employees and generates $700 million (Dh2.5 billion) in twelve-monthly revenue, according to its website.
Siemens already holds a 14 % stake in Bentley, according to one of the people. The firms entered right into a strategic alliance to build up commercial initiatives in 2016 and renewed the pact two years later, saying at that time that €100m ($118m) have been pledged to the venture.
The purchase would mark the start of Siemens’s push into software under incoming chief executive Roland Busch. He's scheduled to dominate in February from Joe Kaeser, who will leave Siemens a transformed company that bears little resemblance to the main one he took over in 2013.
Under Mr Kaeser, Siemens centered on software applications that are crucial to run its commercial equipment and in 2016 paid $4.5bn to acquire Mentor Graphics, Bloomberg News reported at that time. Following Mentor Graphics deal, Siemens planned to pause growing its industrial-software business through large takeovers.
Siemens saw profit rise 8 % in its third quarter as the business handled the coronavirus crisis much better than expected. Results were boosted by strong performance from the program business, where profit surged 62 % in part because of the valuation of its stake in Bentley.
There's been a flurry of commercial software deals within the last month as the world’s biggest machine makers push into digital production. Aveva Group decided to buy SoftBank Group - backed Osisoft for $5bn and Emerson Electric said it would acquire Open Systems International for $1.6bn.
Source: www.thenational.ae
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