Siemens (SIEGY.US) is reportedly set to acquire software maker Altair Engineering (ALTR.US).

Siemens (SIEGY.US) is in talks to buy Altair Engineering (ALTR.US), a software maker, in a deal that would be one of the German engineering group's largest ever, according to people familiar with the matter.

The company is working with advisers to discuss a potential acquisition of Altair, which is headquartered in Troy, Michigan, the people said.

Altair's shares have risen 27% this year, valuing the company at $9.1bn. The company is considering a sale, people familiar with the matter said this week. The stock rose 3.54% by Wednesday's close.

Negotiations are ongoing and it is unclear whether Siemens will decide to proceed, the people said. Other bidders could emerge, they said. Representatives for Altair and Siemens declined to comment.

Under founder and chief executive James Scapa, Altair provides engineering software to companies in industries including aerospace, automotive, energy and financial services. As artificial intelligence becomes more prevalent in everyday life, demand for such tools is expected to grow in tandem.

Under chief executive Roland Busch, Siemens has been exiting its heavy equipment business and moving towards software-driven product lines with higher profit margins to catch up with peers in the automation industry such as Rockwell Automation (ROK.US) and Schneider Electric (SBGSY.US).