German Giant Buys CD-adapco
Lebanon — The purchase by a German engineering giant of a Long Island, N.Y.-based company reverberated in the Upper Valley last week, although the local long-term impact was not immediately clear.
Melville, N.Y.-based CD-adapco, which employs 65 people at offices in the Centerra office park in Lebanon who work primarily in product development, entered into a stock purchase agreement valued at $970 million with Munich-based Siemens AG.
Upon completion of the deal, CD-adapco will become wholly owned by Siemens.
CD-adapco designs simulation software for computational fluid dynamics applications in engineering. The company employs 900 people at 40 locations around the world and had revenues of about $200 million in 2015, Siemens said in a news release. Revenue has been growing at more than 12 percent annually over the past three years and is “expected to continue to experience strong growth in the future,” according to Siemens.
CD-adapco describes itself on the company’s website as “the world’s largest independent provider of engineering simulation software, support and service” with more than 8,000 users among 3,000 different companies.
“After the closing all aspects of the company will be under Siemens ownership. They have said their plans for the foreseeable future is to keep our current locations. They have also stated there are no plans for layoffs,” Elizabeth Arndt, a CD-adapco spokeswoman, said in an email in response to an inquiry about the effect of the transaction on CB-adapco’s Lebanon office.
CD-adapco was co-founded by Steve MacDonald, a simulation developer, in 1980, who was the company’s chief executive and president at the time of his death last year. He was succeeded by his widow, Sharron MacDonald.