HQ Team
April 3, 2025: Siemens AG will acquire US, Boston-based Dotmatics for $5.1 billion from Insight Partners to expand its digital life sciences software applications.
The US company offers a platform with a portfolio of scientific applications and multi-modal data management for research and development in life sciences, according to a Siemens statement.
The platform will seamlessly connect research and development through manufacturing and increase Siemens’ addressable industrial software market by $11 billion.
The acquisition enables Siemens to scale its technologies into life sciences and to fully address growth opportunities in this market. The acquisition is expected to close in the first half of fiscal year 2026.
AI capabilities
It will allow Siemens to combine its comprehensive manufacturing expertise, industrial simulation and AI capabilities with Dotmatics’ leading complementary applications, creating an end-to-end digital thread that connects data from research through to production in life sciences.
“By acquiring Dotmatics, we’re strategically strengthening our position in Life Sciences and creating a world-leading AI-powered product life management software portfolio as part of Siemens Xcelerator,” said Roland Busch, President and CEO of Siemens AG.
“Artificial Intelligence has emerged as a transformative force across various industries, and its application in Life Sciences is becoming increasingly important.”
The acquisition of Dotmatics drives strong revenue synergies and “is highly profitable and cash-generative,” he said.
‘Accelerate innovation cycles’
Financing will be provided primarily through the sale of shares in listed companies, including Siemens Healthineers, said Ralf P. Thomas, CFO of Siemens AG.
Thomas Swalla, CEO of Dotmatics said: “Combining our next-generation scientific intelligence platform and industry-leading scientific applications together with Siemens’ Digital Twin and AI capabilities, we’ll drive a new wave of innovation in life sciences R&D. Together, we’ll accelerate innovation cycles for our customers and help scientists make breakthrough discoveries faster than ever before shaping the future of scientific innovation.”
Life sciences presents an attractive complementary software market opportunity, according to the statement. Dotmatics is expected to generate more than $300 million in revenue in the fiscal year 2025.
Digital transformation
It is driven by structural shifts, such as increased medication needs of ageing 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.
The Dotmatics buyout 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.
