ZURICH, Nov 1 (Reuters) - Siemens has the

financial muscle for further software acquisitions after its

$10.6 billion purchase of U.S. industrial software company

Altair, managing board member Cedrik Neike said.

"This was definitely not the last acquisition we make in the

area of software," Neike told German newspaper Handelsblatt in

an interview published on Friday.

"We have the financial strength to be able to do further

deals," he said. "The software business is an important driver

for growth and profitability."

The Altair deal was the second biggest in Siemens's history,

strengthening the engineering group's position in the growing

market for industrial software.

Neike, who leads Siemens Digital Industries factory

automation business, also defended the price paid for Altair,

which Siemens bought for a multiple of 14 times 2025 estimated

sales, and 25 times estimated operating profit.

The price represented an 18.7% premium to Altair's close on

Oct. 21, a day before Reuters first reported the company was

exploring a sale.

"It is a diamond, a unique opportunity," Neike said.

"The market for industrial software, especially in the area

of simulation, is strongly consolidated.

"In simulation Altair is very strong in the United States

and we are very strong in Asia and Europe. We can increase

growth through cross selling."

Altair was currently increasing its sales at a rate of 12%,

a level which Siemens wanted to increase, Neike added.