Siemens to acquire Boston-based Dotmatics in major software push
Siemens is dropping $5.1 billion to acquire Dotmatics, a Boston-based Life Sciences R&D software provider, from Insight Partners. The deal, announced April 2, 2025, aims to bolster Siemens’ AI-powered Product Lifecycle Management (PLM) portfolio and expand its reach into the life sciences sector.
According to Siemens AG President and CEO Roland Busch, acquiring Dotmatics strategically strengthens Siemens’ position in Life Sciences, creating an AI-powered PLM software portfolio as part of Siemens Xcelerator. He also believes that artificial intelligence has emerged as a transformative force across various industries, and its application in Life Sciences is becoming increasingly important.
Siemens CFO Ralf P. Thomas stated that 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.
Dotmatics CEO Thomas Swalla noted that combining their next-generation scientific intelligence platform and industry-leading scientific applications with Siemens’ Digital Twin and AI capabilities will drive a new wave of innovation in life sciences R&D. He believes that, together, they’ll accelerate innovation cycles for their customers and help scientists make breakthrough discoveries faster than ever before shaping the future of scientific innovation.
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The acquisition expands Siemens’ industrial software total addressable market by $11 billion, addressing the growing need for digital transformation in Life Sciences due to structural shifts such as aging populations and advancing science.
Siemens expects substantial revenue synergies:
- Medium-term revenue synergies: Expected of around $100 million per year.
- Long-term revenue synergies: Accelerating to over $500 million per year.
Dotmatics, which has over 14,000 customers including more than 2 million scientists and a global team of more than 800 people, is projected to generate over $300 million in revenue in fiscal year 2025 with an adjusted EBITDA margin above 40 percent. Dotmatics enterprise R&D platform and applications, including GraphPad Prism, SnapGene and Geneious, drive efficiency and accelerate innovation.
The acquisition is expected to close in the first half of fiscal year 2026, pending regulatory approvals and customary closing conditions.
In fiscal 2024, which ended on September 30, 2024, the Siemens Group generated revenue of €75.9 billion and net income of €9.0 billion. As of September 30, 2024, the company employed around 312,000 people worldwide on the basis of continuing operations.