Siemens announced this week the signing of a definitive agreement with Insight Partners to acquire Dotmatics, an American provider of scientific software, for $5.1 billion. This operation is part of the German group's digital transformation strategy, allowing it to expand its industrial software portfolio into the life sciences, a rapidly growing sector.
Founded in 2005 in Boston, Dotmatics brings Siemens key expertise in scientific data management and R&D collaboration. Its cloud-based scientific data management platform is used by over 2 million scientists and 14,000 clients worldwide. The enterprise R&D applications it includes, such as GraphPad Prism, SnapGene, and Geneious, are widely adopted in drug development and biotechnology, thus accelerating innovation and the market introduction of new therapies.
In 2023, Dotmatics enhanced R&D process efficiency with the launch of Luma, an AI-based multimodal solution. Designed to simplify the management and analysis of scientific data, this low-code SaaS platform allows researchers to centralize information from various software and laboratory instruments.
An $11 Billion Market Opportunity
Following the recent completion of the Altair acquisition for $10 billion, Siemens continues its investments in the United States. The integration of Dotmatics into the Siemens ecosystem is part of the strategic ONE Tech Company program, aimed at expanding the Siemens Xcelerator platform to life sciences. The software tools it integrates allow for the management of a product's entire lifecycle, from design to manufacturing, including simulation, testing, and maintenance. These solutions were previously targeted at the manufacturing, automotive, and aerospace industries.
Roland Busch, CEO of Siemens AG, comments:
"By acquiring Dotmatics, we strategically strengthen our position in the life sciences sector and create a leading AI-optimized PLM software portfolio within Siemens Xcelerator. Artificial intelligence has become a transformative force in various sectors, and its application in life sciences is becoming increasingly important."
By strengthening its footprint in this field, Siemens anticipates an additional market opportunity of $11 billion. The growing demand for new treatments, fueled by scientific advancements and increased needs related to an aging population, indeed creates a favorable environment for the expansion of digital solutions.
Financially, Dotmatics represents a strategic asset with strong profitability and an adjusted EBITDA margin exceeding 40%. Siemens expects this acquisition to be immediately beneficial for its growth and cash flow, with estimated revenue synergies of over $500 million in the long term. The operation, expected to be finalized in early 2026, will be primarily funded by asset sales, including stakes in Siemens Healthineers, the Group's medical equipment subsidiary.
Thomas Swalla, CEO of Dotmatics, concludes:
"After an exciting journey with Insight Partners, where Dotmatics achieved remarkable growth and portfolio expansion, we are thrilled to announce our new chapter with Siemens. By combining our next-generation scientific intelligence platform and leading scientific applications with Siemens' digital twin and AI capabilities, we will drive a new wave of innovation in life sciences R&D."
Translated from Siemens accélère sa transformation numérique avec l’acquisition de Dotmatics pour 5,1 milliards de dollars
To better understand
What is a digital twin and how can it transform R&D in life sciences?
A digital twin is a virtual replica of a physical object or system. In life sciences R&D, it enables the simulation of experiments, optimization of research processes, and hypothesis testing without risk, thereby accelerating the development of new therapies.
What are the regulatory challenges associated with integrating AI-based technologies in life sciences?
Challenges include compliance with data privacy standards, regulatory approval of AI algorithms for clinical applications, and ensuring technologies adhere to ethical and safety standards.