Siemens AG announced that it has completed the acquisition of Dotmatics, a leading provider of Life Sciences R&D software headquartered in Boston and portfolio company of global software investor Insight Partners, for an enterprise value of $5.1 billion. With the transaction now completed, Dotmatics will form part of Siemens’ Digital Industries Software business, marking a significant expansion of Siemens’ industry-leading Product Lifecycle Management (PLM) portfolio into the rapidly growing and complementary Life Sciences market.
The acquisition of Dotmatics strengthens Siemens’ position as a global leader in AI-powered PLM software and enables Siemens to scale its technologies into Life Sciences to fully address growth opportunities in this market. Dotmatics’ Scientific Intelligence Platform, Luma, and its industry-leading scientific applications enable AI-powered multi-modal drug development, seamless collaboration, and contextualized data creating a connected digital thread across the research-to-production value chain.
“With Dotmatics, we’re building a new era of innovation in Life Sciences. From research through to production – we’re creating a unique, end-to-end digital thread: We combine Dotmatics’ scientific intelligence with our industrial AI technologies and digital twins,” said Roland Busch, President and CEO of Siemens AG. “This will allow us to help our customers accelerate breakthroughs, reduce development cycles, and bring life-saving pharmaceuticals faster and more affordably to the market.”
This transaction expands Siemens’ total addressable market for industrial software by $11 billion and aligns with ‘ONE Tech Company’, the company’s strategic growth program, aimed at accelerating innovation and creating value across industries. Dotmatics is expected to generate more than $300 million in revenue in fiscal year 2025 with an adjusted EBITDA margin above 40 percent, further enhancing Siemens’ growth profile. Dotmatics’ revenue growth and high profitability will be immediately accretive to Siemens’ growth, EBITDA margins and free cash flow, prior to any synergies and special items. 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.
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