Siemens has officially completed its $5.1 billion acquisition of Dotmatics, a leading provider of life sciences research and development software, marking a major step in the company’s expansion into the fast-growing life sciences sector.
With the deal now closed, Boston-based Dotmatics will become part of Siemens Digital Industries Software, significantly extending Siemens’ product lifecycle management (PLM) portfolio beyond traditional industrial markets. The acquisition aligns with Siemens’ long-term strategy to build an end-to-end digital thread that connects scientific research with production, supported by artificial intelligence and digital twin technologies.
Dotmatics is best known for its Scientific Intelligence Platform, Luma, which enables data-driven drug discovery through AI-powered analytics, collaboration tools and integrated scientific workflows. By combining these capabilities with Siemens’ industrial AI expertise and Siemens Xcelerator platform, the company aims to help customers accelerate pharmaceutical development, reduce time to market and lower costs in drug production.
Roland Busch, President and CEO of Siemens AG, said the acquisition represents a new chapter for innovation in life sciences. He noted that integrating Dotmatics’ scientific intelligence with Siemens’ digital twin and AI technologies will support faster breakthroughs and improve access to life-saving medicines worldwide.
The transaction also expands Siemens’ total addressable market for industrial software by an estimated $11 billion. Dotmatics is expected to generate more than $300 million in revenue in fiscal year 2025, with strong profitability, making the deal immediately accretive to Siemens’ growth, margins and free cash flow. Siemens anticipates medium-term revenue synergies of around $100 million annually, rising to more than $500 million per year over the long term.
The acquisition is another milestone in Siemens’ “ONE Tech Company” program, which focuses on driving focused growth, stronger customer alignment and faster innovation across industries. With Dotmatics now integrated into its portfolio, Siemens is positioning itself as a key digital partner for the life sciences industry, bridging the gap between research, development and manufacturing through connected, AI-enabled solutions.
