Siemens to acquire Dotmatics in US $5.1B life sciences push

GERMANY – Siemens AG has signed a definitive agreement to acquire Dotmatics, a Boston-based leader in life sciences R&D software, for US $5.1 billion from Insight Partners.

This move marks a major step in Siemens’ strategic expansion into the life sciences sector, enhancing its industrial software portfolio with Dotmatics’ cutting-edge scientific intelligence platform.

The acquisition bolsters Siemens’ ability to deliver AI-powered solutions across drug development, integrating Dotmatics’ multi-modal data management and scientific applications into Siemens’ Digital Twin ecosystem under the Siemens Xcelerator platform.

Roland Busch, CEO of Siemens AG, described the acquisition as a pivotal moment in the company’s growth strategy, positioning Siemens at the forefront of AI-driven product lifecycle management in life sciences.

As pharmaceutical R&D becomes increasingly digital, Dotmatics’ technology will allow Siemens to support faster innovation cycles and help scientists make breakthrough discoveries.

The move also builds on Siemens’ “ONE Tech Company” initiative, which targets high-growth, tech-enabled verticals.

The acquisition expands Siemens’ addressable industrial software market by US $11 billion, aligning with structural global healthcare trends such as aging populations, rising demand for medicine, and the push for more efficient, collaborative R&D.

Dotmatics, whose software tools like GraphPad Prism, SnapGene, and Geneious are trusted by more than two million scientists, will bring in over US $300 million in revenue in FY2025 with an EBITDA margin exceeding 40%.

Revenue synergies are projected to start at US $100 million annually, ramping up to over US $500 million in the long term.

Funding for the acquisition will come largely from Siemens’ divestment of shares in listed entities, including Siemens Healthineers.

The transaction is expected to close in the first half of fiscal year 2026, subject to customary closing conditions and regulatory approvals.

Upon completion, Dotmatics will operate under Siemens’ Digital Industries Software division, continuing to serve its global customer base while leveraging Siemens’ resources to further enhance its offerings.

Once finalized, the acquisition will enable Siemens to connect research data directly to production processes in life sciences—creating a unified digital thread and driving transformative value in a high-growth, innovation-driven market.