Siemens says will continue to make digital acquisitions
German industrial group Siemens will continue to buy software companies to beef up its core industrial business, its board member with responsibility for its digital factory division said on Monday.
“Will we continue to invest in acquisitions? Definitely, yes,” Klaus Helmrich told a news conference when asked whether Siemens would continue to buy so-called product lifecycle management software firms at the rate it has been doing.
Siemens agreed in January to buy U.S. engineering software firm CD-adapco for $970 million, the latest in a string of ac of companies that help manage products from inception through to service or disposal.
Melville, New York-based CD-adapco makes computer programs used by engineers to simulate the inner workings of an engine. Those products will complement a business unit of Siemens focused on product lifecycle management software, the person added.
Since taking over Siemens as chief executive two years ago, former finance chief Joe Kaeser has set out to reshape the German company and make it more profitable and less cumbersome by selling off non-core units.
But Siemens has increasingly had to compete with software companies who can develop technology faster because they have a sole focus. Only 5 percent of Siemens’ 350,000 employees are software engineers.
Siemens said in December last year it would raise its research and development budget as it seeks to maintain an edge in technology innovation over arch-rival General Electric Co.