Siemens Buys Dotmatics

Siemens AG has signed an agreement to acquire Dotmatics, provider of Life Sciences R&D software based in Boston, for $5.1 billion from Insight Partners. This acquisition represents a strategic milestone for Siemens, expanding its digital twin technology and AI-powered software into this market. The U.S. company offers a platform with a portfolio of scientific applications and multi-modal data management for Life Sciences R&D. 

"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," says Roland Busch, president and CEO of Siemens AG. "The Dotmatics acquisition is part of our ONE Tech Company growth program, enhancing our leading position in industrial software and helping our customers to innovate even faster."

"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," says Ralf P. Thomas, CFO of Siemens AG.  

"Following an exciting journey with Insight Partners, where Dotmatics achieved remarkable growth and portfolio expansion, we are thrilled to announce our new chapter with Siemens," says Thomas Swalla, CEO of Dotmatics. "Combining our next-generation scientific intelligence platform and industry-leading scientific applications together with Siemens' Digital Twin and AI capabilities, we'll drive a new wave of innovation in life sciences R&D."

The acquisition is part of the investment track of Siemens' ONE Tech Company program. Through acquisitions like this, as well as R&D investments into areas including software, AI-enabled products, connected hardware and sustainability, Siemens indicates it is prioritizing capital allocation to strategic growth fields. The acquisition of Dotmatics enables Siemens to scale its technologies into Life Sciences and to fully address growth opportunities. It will allow Siemens to combine its manufacturing expertise, industrial simulation and AI capabilities with Dotmatics' complementary applications, creating an end-to-end digital thread that connects data from research through to production in Life Sciences.

Dotmatics is expected to generate more than $300 million revenue in fiscal year 2025 and is profitable and cash generative with an adjusted EBITDA margin of above 40%. The company's mid-teens revenue growth and high profitability will be immediately accretive to Siemens' growth, EBITDA margins and free cash flow, prior to any synergies. Siemens expects substantial revenue synergies: Medium-term revenue synergies expected of around $100 million per year accelerating to over $500 million per year in the long term.

Capital structure at closing is expected to be within Siemens' target corridor. Closing of the transaction is anticipated for the first half of fiscal year 2026 subject to customary closing conditions and applicable regulatory approvals.

About Dotmatics 

Dotmatics is vested in R&D scientific software connecting science, data, and decision-making. It offers enterprise R&D platform and applications, including GraphPad Prism, SnapGene and Geneious. Dotmatics is a global team of more than 800 people dedicated to supporting its customers in over 180 countries. The company is headquartered in Boston, with 14 offices and R&D teams located around the world.

Sources: Press materials received from the company and additional information gleaned from the company’s website.