Expands Siemens' AI-powered PLM into Life Sciences, linking R&D to manufacturing.
Siemens AG announces that it has signed an agreement to acquire Dotmatics, a provider of Life Sciences R&D software based in Boston, for $5.1 billion from Insight Partners. This acquisition expands Siemens’ digital twin technology and AI-driven software into the Life Sciences market. The U.S. company provides a platform with scientific applications and multi-modal data management for Life Sciences R&D. Its solutions support collaboration and data organization to facilitate AI-assisted drug development.
Life Sciences presents a complementary software market opportunity and expands Siemens’ industrial software total addressable market by $11 billion. This market is driven by structural shifts, such as increased medication need driven by aging societies and improved access to medicine, new treatment options from advancing science and the necessity for increased collaboration and visibility across complex value chains. These trends underscore the need for digital transformation, with software spending expected to double over the next five years.
Siemens’ expansion within Life Sciences aligns with its strategic goal to accelerate customer innovation across the top industries with the highest R&D spend. The acquisition is part of the investment track of Siemens’ ONE Tech Company program and following last week’s closing of Altair’s acquisition, yet another milestone. This growth program enables Siemens to further expand its market position and reach the next level of performance and value creation. Through acquisitions like this, as well as R&D investments into areas including software, AI-enabled products, connected hardware and sustainability, Siemens is clearly prioritizing capital allocation to strategic growth fields. The acquisition of Dotmatics enables Siemens to scale its technologies into Life Sciences and to fully address growth opportunities in this market. Siemens will integrate its manufacturing expertise, industrial simulation, and AI capabilities with Dotmatics’ applications to establish a digital connection between research and production in Life Sciences.
Significant synergies
Dotmatics is expected to generate more than $300 million revenue in fiscal year 2025 and is highly profitable and cash generative with an adjusted EBITDA margin of above 40 percent. The company’s mid-teens revenue growth and high profitability will be immediately accretive to Siemens’ growth, EBITDA margins and free cash flow, prior to any synergies. Siemens expects substantial revenue synergies: Medium-term revenue synergies are expected to be around $100 million per year, accelerating to over $500 million per year in the long term.
Capital structure at closing is expected to be within Siemens’ target corridor. Closing of the transaction is anticipated for the first half of fiscal year 2026 subject to customary closing conditions and applicable regulatory approvals.
For more information, visit siemens.com.
