By: IPP Bureau
Last updated : April 07, 2025 3:12 pm
Increases Siemens’ industrial software total addressable market by $11 billion; aligns with strategic goal to accelerate customer innovation across industries
Siemens AG has signed an agreement to acquire Dotmatics, a leading provider of Life Sciences R&D software based in Boston, for $5.1 billion from Insight Partners. This acquisition represents a strategic milestone for Siemens, expanding its comprehensive Digital Twin technology and AI-powered software into this rapidly growing complementary market.
Dotmatics offers a market leading platform with a highly profitable portfolio of scientific applications and multi-modal data management for Life Sciences R&D. The company’s offering accelerates customers’ innovation, delivering next generation collaboration and contextualized data to enable AI-powered multi-modal drug development.
“By acquiring Dotmatics, we’re strategically strengthening our position in Life Sciences and creating a world-leading AI-powered PLM software portfolio as part of Siemens Xcelerator. Artificial Intelligence has emerged as a transformative force across various industries, and its application in Life Sciences is becoming increasingly important”, said Roland Busch, President and CEO of Siemens AG. “The Dotmatics acquisition is part of our ONE Tech Company growth program, enhancing our leading position in industrial software and helping our customers to innovate even faster.”
“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.”
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 expected of 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.