Siemens AG has announced its acquisition of Dotmatics, a leading provider of R&D software for the Life Sciences sector, based in Boston, for $5.1 billion. This move strengthens Siemens’ Digital Twin technology and AI-powered software offerings in the growing Life Sciences market. Dotmatics brings a robust platform focused on scientific applications and data management, aimed at accelerating drug development through AI-driven insights and enhanced collaboration.
This acquisition will generate substantial revenue synergies, with Siemens expecting Dotmatics to contribute more than $300 million in revenue by 2025. The company’s high profitability, with an adjusted EBITDA margin exceeding 40%, will positively impact Siemens’ growth, EBITDA margins, and free cash flow. Siemens expects medium-term synergies to reach around $100 million annually, growing to over $500 million in the long term.
Ralf P. Thomas, Siemens’ CFO, stated that financing for the deal will be largely provided by the sale of shares in listed subsidiaries, including Siemens Healthineers. Dotmatics’ CEO, Thomas Swalla, expressed excitement about the new partnership, highlighting the combination of their platform with Siemens’ AI and Digital Twin capabilities. This collaboration aims to drive faster scientific discoveries and more efficient R&D cycles in the Life Sciences sector.
The Life Sciences market is expected to expand Siemens’ addressable software market by $11 billion. Trends like an aging population, the need for better access to healthcare, and the increasing complexity of drug development drive the demand for digital transformation in this space. Software spending in the sector is predicted to double in the next five years.
The acquisition is a key part of Siemens’ strategy to accelerate innovation in industries with high R&D investments. As part of the company’s ONE Tech program, this acquisition further enhances Siemens’ market position and its focus on strategic growth areas, including AI, connected hardware, and sustainability.
Dotmatics is known for its enterprise R&D platform, which connects scientific data and decision-making across various applications like GraphPad Prism, SnapGene, and Geneious. Trusted by over 14,000 customers and more than 2 million scientists globally, Dotmatics supports research in over 180 countries. The company employs more than 800 people worldwide and has a significant presence in Boston, where it is headquartered.
The deal is expected to close by the first half of Siemens’ fiscal 2026, pending regulatory approvals. The acquisition will help Siemens extend its capabilities from R&D to production in Life Sciences, integrating advanced digital solutions to improve efficiency and innovation across the sector.
