Siemens to Acquire Dotmatics for $5.1 Billion, Expanding AI-Powered Life Sciences Software Portfolio
Siemens AG has announced a definitive agreement to acquire Dotmatics, a prominent Life Sciences R&D software provider headquartered in Boston, for $5.1 billion. The deal, made with investment firm Insight Partners, marks a major strategic expansion for Siemens into the life sciences sector. It also significantly enhances Siemens' capabilities in digital twin and AI-powered software technologies through the Siemens Xcelerator platform.
Dotmatics is known for its leading scientific intelligence platform and a robust suite of applications designed to manage multi-modal data, supporting advanced drug discovery and development. Its technology promotes faster innovation and deeper collaboration by contextualizing data across research environments.
Driving Innovation with AI and Digital Twin Capabilities
Roland Busch, President and CEO of Siemens AG, said, “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”
The integration of Dotmatics’ software will enable Siemens to extend its digital twin and simulation technologies into the life sciences domain, offering customers a unique, end-to-end digital solution from R&D to production.
Also read: China’s CIBR and NeuCyber Speed Up Brain-Computer Interface Trials After Initial Success
Financial Strategy and Revenue Growth Potential
According to Siemens CFO Ralf P. Thomas, the acquisition will be financed largely by the sale of shares in publicly listed subsidiaries, including Siemens Healthineers. He emphasized the strong profitability and revenue synergy potential of the deal, calling it highly cash generative.
The life sciences sector represents a growing $11 billion opportunity within Siemens’ industrial software market. Key industry drivers such as aging populations, scientific advances, and a growing demand for more efficient drug development are fueling increased investment in software solutions to streamline collaboration and accelerate discovery.
Software spending in life sciences is projected to double over the next five years, making it a critical area of strategic focus.
This acquisition follows Siemens’ broader ONE Tech Company initiative, which includes investments in AI, connected devices, software, and sustainability. It builds on the company’s recent growth momentum, including the completion of Altair’s acquisition last week.
