NEW YORK – Siemens said Wednesday that it has acquired life sciences R&D software developer Dotmatics from Insight Partners in a $5.1 billion deal that will be financed primarily by the sale of shares in Siemens Healthineers and other companies in which Siemens has an ownership stake.
The deal is expected to close in the first half of FY 2026, subject to customary closing conditions and regulatory approvals.
Siemens said that the deal will help it to strengthen its position in the life sciences software market and create a portfolio of artificial intelligence-developed product lifecycle management software within the Siemens Xcelerator marketplace. The firm further said that the deal will help it to expand the reach of the company's Digital Twin simulation technology into the life sciences complementary software market.
Dotmatics has developed a portfolio of AI-developed product lifecycle management software, and its platform is used for scientific applications and multimodal data management in life sciences R&D, including collaboration and data analysis tools that are used in drug development. Siemens said that the acquisition will help it to scale its technologies into life sciences, address growth opportunities in the market, and create an end-to-end "digital thread" to link research data to production.
Dotmatics is expected to record revenues exceeding $300 million in FY 2025, with mid-teens revenue growth and high profitability. Siemens said that it also expects medium-term revenue synergies of about $100 million per year and long-term synergies of more than $500 million per year.
"The acquisition of Dotmatics drives strong revenue synergies and is highly profitable and cash generative," Siemens CFO Ralf Thomas said in a statement.