Siemens Acquires Life Sciences R&D Software Provider Dotmatics for $5.1 Bn

Siemens has announced that it has officially signed a definitive agreement to acquire Dotmatics for $5.1 billion, marking a major expansion into AI-powered Life Sciences R&D Software.

Dotmatics, a Boston-based company, specializes in multi-modal data management and scientific intelligence platforms, which will now integrate with Siemens' Digital Twin technology to accelerate drug development and research.

This acquisition aligns with Siemens' ONE Tech Company growth program, reinforcing its leadership in industrial software and expanding its AI-driven Product Lifecycle Management (PLM) portfolio. The deal is being financed primarily through **the sale of shares in listed companies, including Siemens Healthineers.

This acquisition could significantly impact scientific innovation and industrial AI applications.

“The acquisition of Dotmatics drives strong revenue synergies and is highly profitable and cash generative. Financing will be provided primarily through the sale of shares in listed companies, including Siemens Healthineers,” said Ralf P. Thomas, CFO of Siemens AG.

“Following an exciting journey with Insight Partners, where Dotmatics achieved remarkable growth and portfolio expansion, we are thrilled to announce our new chapter with Siemens,” said Thomas Swalla, CEO of Dotmatics. “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 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. It will allow Siemens to combine its comprehensive manufacturing expertise, industrial simulation and AI capabilities with Dotmatics’ leading complementary applications, creating a first-of-its-kind end-to-end digital thread that connects data from research through to production in Life Sciences.