Altair acquires Cambridge Semantics for AI expansion

  • Investing.com
Altair acquires Cambridge Semantics for AI expansion
Credit: © Reuters.

TROY, Mich. - Altair (NASDAQ:ALTR), a company specializing in computational intelligence, announced the acquisition of Cambridge Semantics, a provider known for its analytical graph database technology. This move is aimed at enhancing Altair's data analytics and artificial intelligence (AI) capabilities.

The acquisition, which was finalized on April 18, 2024, brings together Cambridge Semantics' knowledge graph technology with Altair's data analytics and data science tools. Knowledge graphs are instrumental in creating comprehensive data fabrics, which integrate diverse enterprise data into a unified view, facilitating advanced analytics and AI applications.

James R. Scapa, Altair's CEO, emphasized the importance of knowledge graphs inputting data into the right hands at the right time and ensuring the success of generative AI applications by providing the necessary business context. Cambridge Semantics' technology will be integrated into Altair's RapidMiner platform, enhancing its data governance, virtualization, and discovery capabilities.

Charles Pieper, CEO of Cambridge Semantics, expressed enthusiasm about the acquisition, anticipating accelerated technology adoption and benefits for their customer base, which includes Fortune 500 companies in government, defense, life sciences, and manufacturing sectors.

Cambridge Semantics was established in 2007 by a team from IBM (NYSE: IBM )'s Advanced Technology Group. The company's expertise in semantic graph data models has been recognized as a key driver for analytics and strategic differentiation. Its technical team's background in data warehousing solutions like IBM Netezza and Amazon (NASDAQ: AMZN ) Redshift adds significant knowledge graph expertise to Altair.

Srikanth Mahalingam, Altair's CTO, highlighted the acquisition's contribution to their analytics and data science team, creating a robust engineering group with a comprehensive understanding of the data lifecycle.

The financial terms of the acquisition were not disclosed in the press release statement.

InvestingPro Insights

As Altair (NASDAQ:ALTR) embarks on its latest strategic acquisition of Cambridge Semantics, investors and stakeholders are keenly observing the company's financial health and market performance. Altair's current Market Cap stands at $6.69 billion, reflecting the company's substantial presence in the computational intelligence industry.

Despite a challenging market environment, Altair has demonstrated resilience with a Revenue Growth of 7.07% in the last twelve months as of Q4 2023. This growth is consistent with the company's vision to expand its data analytics and artificial intelligence capabilities, as seen with the Cambridge Semantics acquisition. The Gross Profit Margin for the same period is notably high at 80.12%, indicating the company's effectiveness in managing its cost of goods sold and retaining earnings from sales.

InvestingPro Tips highlight that Altair's Price / Book ratio as of Q4 2023 is 9.4, suggesting that the market values the company higher than its net asset value, which could be due to the anticipated synergies from its recent acquisition and its potential to enhance earnings in the future. Moreover, Altair's EBITDA Growth rate soared to 110.48% in the last twelve months as of Q4 2023, indicating a strong operational performance.

For investors looking to delve deeper into Altair's financials and future prospects, InvestingPro offers additional insights and metrics. With the use of coupon code PRONEWS24, users can get an extra 10% off on a yearly or biyearly Pro and Pro+ subscription, gaining access to a wealth of information including more InvestingPro Tips, which currently lists 21 additional tips for Altair.

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