Siemens has indicated its capacity for further investments in the software sector following its acquisition of US industrial software company Altair for $10.6bn, Reuters reports.

Siemens signed an agreement to acquire Altair Engineering recently.

In an interview with German newspaper Handelsblatt, Siemens managing board member Cedrik Neike stated: “This was definitely not the last acquisition we make in the area of software.”

Neike emphasised the company’s “robust” financial position to support additional deals, saying, “We have the financial strength to be able to do further deals.”

He also highlighted the strategic importance of the software business, noting it as “an important driver for growth and profitability.”

The Altair acqusition is said to be the second largest takeover in the company’s history. Following this deal, Siemens wants to further expand its market leadership in industrial software globally.

In the interview, the CEO noted that the purchase price of more than $10bn for the simulation software specialist Altair is high, but he is “convinced that it will pay off”.

Altair is said to be growing at 12% presently, the Digital Industries division head told the German newspaper.

However, Neike clarifies that Siemens does not intend to become solely a software company. “We aim to integrate hardware and software,” he said, noting that major tech companies such as Tesla, Microsoft, and Nvidia follow a similar approach. “It’s a huge advantage to have both.”