Germany-based Siemens has completed its previously announced acquisition of Dotmatics, a Boston-based provider of life sciences R&D software, for an enterprise value of $5.1bn.
Dotmatics was acquired from Insight Partners, a software investor supporting high-growth technology, software, and Internet startup and ScaleUp companies.
The acquisition empowers Siemens and Dotmatics to provide advanced software solutions, enhancing collaboration and data contextualisation in scientific research.
Dotmatics will benefit from Siemens’ global resources, infrastructure, and customer network, advancing its mission to revolutionise scientific discovery.
Siemens’ manufacturing expertise and Dotmatics’ scientific applications will create a complete digital thread, connecting research data to production in the life sciences industry.
Siemens president and CEO Roland Busch said: “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.
“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.”
The transaction expands Siemens’ industrial software market by $11bn, aligning with its ‘ONE Tech Company’ strategic growth programme.
Dotmatics is projected to generate over $300m in revenue in fiscal year 2025, with an adjusted EBITDA margin exceeding 40%.
The growth will enhance the German company’s financial profile, with medium-term revenue synergies expected to reach $100m annually, accelerating to over $500m in the long term.
Siemens will expand its Digital Industries Software business, enhancing its Product Lifecycle Management (PLM) portfolio within the life sciences market.
Dotmatics will integrate into Siemens, strengthening its position as a global leader in AI-powered Product Lifecycle Management (PLM) software.
Siemens is enabled to scale its technologies in life sciences, together with Dotmatics’ Scientific Intelligence Platform, Luma, and its scientific applications.
The tools facilitate AI-powered drug development, collaboration, and data management across the research-to-production value chain.
