German technology giant Siemens has agreed to acquire Lauterbach, provider of debug and trace tools for embedded software and complex system-on-chip architectures.

The purchase represents part of Siemens’ wider initiative to build out its electronic design  automation (EDA) portfolio.

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Siemens intends to merge Lauterbach’s hardware-assisted debuggers and real-time trace instruments for embedded CPU cores and microprocessors with its own hardware-assisted verification products.

This combination is aimed at establishing an integrated workflow spanning semiconductor hardware verification, embedded software debugging, and trace technology.

Siemens managing board member and digital industries president Cedrik Neike said: “With Lauterbach, we are further extending our industry-leading EDA portfolio for semiconductor design by bringing together our premier hardware-assisted verification portfolio with its industry-leading software debugging technologies.”

According to Siemens, this unified perspective on software and chip behaviour will allow clients to detect interaction problems between hardware and software at an earlier stage of development, while also permitting them to build and check embedded software prior to the availability of physical chips.

The group anticipates revenue synergies arising from the deal as semiconductor work and embedded software creation become increasingly intertwined, noting that both businesses already share several clients.

Headquartered in Munich, Germany, Lauterbach was established in 1979 by brothers Lothar and Stephan Lauterbach.

The firm generated roughly €60m ($66.5m) in revenue in 2025, maintains a staff of around 170 individuals, and caters to more than 1,200 clients worldwide across the telecommunications, automotive, and semiconductor sectors.

The deal, whose financial details was not disclosed, is slated to close during the first half of 2027, subject to customary closing terms and regulatory clearances.

Stephan, who is also the CTO, added: “By combining our debug and trace technology with Siemens’ hardware-assisted verification capabilities, we are creating a powerful solution that provides developers with a unified hardware/software view of the behaviour of increasingly complex ASIC and SoC devices in AI, high-performance computing, storage/hyperscale, automotive, communications and A&D applications.”