Siemens has completed the acquisition of Dotmatics, a US provider of R&D software for the life sciences industry. The company is valued at $5.1 billion. With its integration into Siemens Digital Industries Software, the company is expanding its product lifecycle management (PLM) portfolio to include research and development as well as production.
Siemens strengthens its position in AI-enabled life sciences software
The acquisition gives the manufacturer access to the Luma Scientific Intelligence Platform and other Dotmatics software solutions that enable multimodal drug discovery and contextualized data analysis. This creates a digital thread that covers the entire pharmaceutical value chain. Dotmatics was previously a portfolio company of global software investor Insight Partners and is headquartered in Boston.
Accelerating scientific drug discovery through data integration
The aim is to make drug discovery more efficient by linking industrial AI technologies with scientific applications. According to Roland Busch, CEO of Siemens, this will enable customers to shorten development cycles and bring drugs to market faster: “With Dotmatics, we’re building a new era of innovation in Life Sciences. From research through to production, we’re creating a unique, end-to-end digital thread: We combine Dotmatics’ scientific intelligence with our industrial AI technologies and digital twins,” says Roland Busch, President and CEO of Siemens. “This will allow us to help our customers accelerate breakthroughs, reduce development cycles, and bring life-saving pharmaceuticals faster and more affordably to the market.”
Contribution to Siemens' growth strategy
The acquisition is a milestone in Siemens' strategic growth program “One Tech Company.” Significant synergies are expected: Up to $500 million per year in revenue potential is expected to be tapped in the long term. Dotmatics is expected to generate revenue of over $300 million and an Ebitda margin of more than 40 percent as early as fiscal year 2025. This transaction expands Siemens' total addressable market for industrial software by approximately $11 billion. The company is thus strengthening its position in the life sciences industry and opening up new potential for digital technologies in research, development, and production.
