Siemens Acquires AI-Powered Life Sciences Software Company Dotmatics for $5.1 Billion

Siemens buys US firm Dotmatics for $5.1 bn in AI software push

Germany group Siemens said on Wednesday it is buying Dotmatics, a US software company, for $5.1 billion to leverage its use of artificial intelligence to make drug discoveries. Siemens said the acquisition was "complementary" to its expansion into Life Sciences and would lift its game in a market needing more medication innovation as populations age. "These trends underscore the need for digital transformation, with software spending expected to double over the next five years," Siemens said in a statement. The German group said that it expected Dotmatics to be immediately profitable, and to bring in $100 million a year in revenue over the mid-term, rising to $500 million in the long-term. It said the transaction would be completed in the first half of next year. Siemens recently bought another US software firm also using AI, Altair Engineering, for $10 billion. Dotmatics, founded in 2005 and with a workforce of 800 people, presents itself as a leader in R&D software, and has a platform using AI to accelerate drug research. Siemens, Germany's second-biggest company by market capitalization, has been seeing increased revenues from its software division as its digital products for factories face a slump.

Siemens to buy life sciences R&D company Dotmatics for $5.1B - SiliconANGLE

German industrial giant Siemens AG said today it will pay $5.1 billion to acquire the life sciences data startup Dotmatics in an effort to expand its artificial intelligence offerings. The company said the deal to acquire Dotmatics, officially known as GraphPad Software LLC, is expected to close in the first half of 2026, according to a report in the Wall Street Journal. Boston-based Dotmatics was founded in 2005 by the former Merck & Co. scientists Stephen Gallagher and Alastair Hill, and claims that more than two million scientists in 125 countries use its "Science Intelligence" platform to digitize lab data, enhance collaboration and analyze their research findings. Siemens wants to combine Dotmatic's data applications with its AI, manufacturing and industrial-simulation tools in order to connect development processes from the research and development stage all the way to end manufacturing operations. The acquisition will increase its total addressable market within the industrial software sector by up to $11 billion, it said. The German company has long been trying to leverage AI to accelerate innovation across industries. "Artificial intelligence has emerged as a transformative force across various industries and its application in life sciences is increasingly important," said Siemens Chief Executive Roland Bursch in a statement. Dotmatics CES Thomas Swalla said the combination of his company's platform and Siemens AI and digital twin technologies will drive "a new wave of innovation" in life sciences R&D. Siemens said it intends to finance the deal primarily via the sale of shares in listed companies, such as Siemens Healthineers. Dotmatics, which is backed by the venture capital firm Insight Partners, anticipates it will generate more than $300 million in revenue during the current fiscal year. According to Siemens, it's already very profitable, with an earnings before interest, taxes, depreciation and amortization or EBITDA margin of more than 40%. Once the acquisition closes, Siemens says it will see near-term revenue synergies of around $100 million per year, rising to more than $500 million annually over the long term. It will be immediately accretive to the company's growth, prior to considering any synergies, it added. Insight Partners first invested in Dotmatics in 2017, and was part of a fund that acquired the company outright in 2021 for around $500 million. In a report last December, Bloomberg said Insight was exploring options for Dotmatics. "The transition of Dotmatics from Insight Partners to Siemens represents a logical next step, empowering Dotmatics to further advance its mission of accelerating innovation within life sciences," said Insight Partners Managing Director Jared Rosen in a statement to Bloomberg. For Siemens, the deal will be the sixth-biggest in its history, out of hundreds of acquisitions it has made over its more than 100-year existence. Last year, it paid $10 billion to buy a company called Altair Engineering Inc., which is its biggest acquisition to date.

Siemens to acquire Boston-based Dotmatics in major software push

Siemens is dropping $5.1 billion to acquire Dotmatics, a Boston-based Life Sciences R&D software provider, from Insight Partners. The deal, announced April 2, 2025, aims to bolster Siemens' AI-powered Product Lifecycle Management (PLM) portfolio and expand its reach into the life sciences sector. According to Siemens AG President and CEO Roland Busch, acquiring Dotmatics strategically strengthens Siemens' position in Life Sciences, creating an AI-powered PLM software portfolio as part of Siemens Xcelerator. He also believes that artificial intelligence has emerged as a transformative force across various industries, and its application in Life Sciences is becoming increasingly important. Siemens CFO Ralf P. Thomas stated that 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. Dotmatics CEO Thomas Swalla noted that combining their next-generation scientific intelligence platform and industry-leading scientific applications with Siemens' Digital Twin and AI capabilities will drive a new wave of innovation in life sciences R&D. He believes that, together, they'll accelerate innovation cycles for their customers and help scientists make breakthrough discoveries faster than ever before shaping the future of scientific innovation. Qualcomm just bought an AI company you've never heard of The acquisition expands Siemens' industrial software total addressable market by $11 billion, addressing the growing need for digital transformation in Life Sciences due to structural shifts such as aging populations and advancing science. Siemens expects substantial revenue synergies: Dotmatics, which has over 14,000 customers including more than 2 million scientists and a global team of more than 800 people, is projected to generate over $300 million in revenue in fiscal year 2025 with an adjusted EBITDA margin above 40 percent. Dotmatics enterprise R&D platform and applications, including GraphPad Prism, SnapGene and Geneious, drive efficiency and accelerate innovation. The acquisition is expected to close in the first half of fiscal year 2026, pending regulatory approvals and customary closing conditions. In fiscal 2024, which ended on September 30, 2024, the Siemens Group generated revenue of €75.9 billion and net income of €9.0 billion. As of September 30, 2024, the company employed around 312,000 people worldwide on the basis of continuing operations.

Siemens Agrees to Buy Software Company Dotmatics for $5.1 Billion

Siemens has agreed to acquire Dotmatics, a life-science research-and-development software company, for $5.1 billion, the companies said Wednesday. The deal will be financed primarily through the sale of shares in listed companies, including Siemens Healthineers, Siemens said. Dotmatics extends Siemens's artificial-intelligence-powered product-lifecycle-management portfolio into life sciences and increases the company's total addressable market in industrial software by $11 billion. The deal aligns with the Munich company's aims to accelerate innovation across industries. "Artificial Intelligence has emerged as a transformative force across various industries, and its application in Life Sciences is becoming increasingly important," Siemens Chief Executive Roland Busch said.