Form 4: Altair Engineering Inc. Chief Technology Officer's Stock Holdings Canceled Following Siemens Acquisition

Mahalingam Srikanth, Chief Technology Officer of Altair Engineering Inc., reports the cancellation of stock and stock options following the acquisition of the company by Siemens Industry Software Inc.

Summary

• On March 26, 2025, Altair Engineering Inc. was acquired by Siemens Industry Software Inc.
• As a result of the merger, Mahalingam Srikanth, the Chief Technology Officer, had his Class A Common Stock and stock options canceled.
• Each share of Class A Common Stock was converted into the right to receive $113.00 in cash.
• Restricted stock units (RSUs) scheduled to vest on or before December 31, 2025, were vested, canceled, and converted into the right to receive $113.00 in cash.
• RSUs scheduled to vest after January 1, 2026, were canceled and converted into the right to receive $113.00 in cash, payable on the last day of the calendar quarter preceding the original vesting date.
• Outstanding stock options were also canceled and converted into the right to receive the cash value of the option, with payment timing dependent on the original vesting schedule.
• The reporting person now holds zero shares of Class A Common Stock and zero derivative securities.

Sentiment

Score: 7

Explanation: The document is neutral in sentiment, as it simply reports the completion of a merger and the resulting changes in stock ownership. The conversion of equity to cash is generally a positive outcome for shareholders and option holders.

Future Outlook

The document does not contain any forward-looking statements regarding the company's future performance, as it focuses on the completion of the acquisition by Siemens.

Industry Context

The acquisition of Altair Engineering Inc. by Siemens Industry Software Inc. reflects a trend of consolidation in the software and engineering solutions industry, where larger companies acquire smaller, innovative firms to expand their product offerings and market reach.

Comparison to Industry Standards

• Comparing this acquisition to similar deals in the software industry, the conversion of stock and options into cash payments is a standard practice.
• For example, when Autodesk acquired PlanGrid, outstanding stock options were similarly converted into cash based on the acquisition price.
• The $113 per share conversion price should be compared to the trading price of ALTR before the announcement to assess the premium paid by Siemens.
• Other comparable companies that have been acquired in the software space include Red Hat (acquired by IBM) and VMware (acquired by Broadcom), where similar treatment of equity awards occurred.

Stakeholder Impact

• Shareholders received $113.00 in cash for each share of Class A Common Stock.
• Employees holding RSUs and stock options will receive cash payments based on the terms outlined in the merger agreement.

Key Dates

Keywords

acquisition, merger, Siemens, Altair Engineering Inc., stock options, RSUs, Form 4, beneficial ownership, Mahalingam Srikanth, Chief Technology Officer