The company’s offering accelerates innovation for its customers by providing the next generation of collaboration and contextualized data for AI-powered multimodal drug development.
“With the acquisition of Dotmatics, we are strategically strengthening our position in life sciences and creating a world-leading AI-powered PLM software portfolio as part of Siemens Xcelerator. Artificial intelligence has become a transformative force in numerous industries, and its application in life sciences is becoming increasingly important,” said Roland Busch, CEO of Siemens AG. “The acquisition of Dotmatics is part of our “ONE Tech Company” growth program to further expand our leading position in industrial software and help our customers innovate even faster.”
“The acquisition of Dotmatics creates strong revenue synergies, is highly profitable and will have a positive impact on cash flow. It will be financed primarily through the sale of shares in listed companies, including Siemens Healthineers,” said Ralf P. Thomas, Chief Financial Officer of Siemens AG.
“After a successful collaboration with Insight Partners, where Dotmatics has achieved impressive growth and portfolio expansion, we are excited about new capital with Siemens,” said Thomas Swalla, CEO of Dotmatics. “By combining our next-generation Scientific Intelligence platform and industry-leading scientific applications with Siemens’ Digital Twin and AI capabilities, we will drive a new wave of innovation in life sciences research and development. Together, we will accelerate innovation cycles for our customers and help scientists make breakthrough discoveries faster than ever before and shape the future of scientific innovation.”
The life sciences sector represents an attractive complementary market for software and adds $11 billion to Siemens’ total addressable market for industrial software. This market is subject to structural changes such as increasing demand for pharmaceuticals due to an aging society and improved access to healthcare, new treatment options due to scientific progress and the need for increased cooperation and transparency along complex value chains. These trends underline the need for digital transformation. Spending on software is expected to double over the next five years.
Siemens’ expansion in the life sciences sector is in line with its strategic goal of accelerating customer innovation in the industries with the highest R&E spending. The acquisition is part of the so-called investment track of Siemens’ “ONE Tech Company” program and marks another milestone following the closing of the Altair acquisition last week. The growth program will enable Siemens to further expand its market position and reach the next level of performance and value creation. With acquisitions like this and investments in research and development in areas such as software, AI-enabled products, connected hardware and sustainability, Siemens is clearly prioritizing the allocation of capital to strategic growth areas. The acquisition of Dotmatics enables Siemens to scale its technologies in life sciences and fully capitalize on the growth opportunities in this market. It will allow Siemens to combine its extensive manufacturing expertise, industrial simulation and AI capabilities with Dotmatics’ complementary applications to create the first of its kind end-to-end digital thread linking data from research to production in Life Sciences.
Significant synergies
Dotmatics is expected to generate revenues of more than 300 million US dollars in fiscal year 2025 and is highly profitable and cash flow positive with an adjusted EBITDA margin of over 40 percent. The company’s mid-teens revenue growth and high profitability will have an immediate positive impact on Siemens’ growth, EBITDA margin and free cash flow, even before synergies are realized. Siemens expects significant revenue synergies: Revenue synergies of around USD 100 million per year are expected in the medium term, increasing to over USD 500 million per year in the long term.
The capital structure at closing of the transaction is expected to be within Siemens’ target corridor. The transaction is expected to close in the first half of fiscal year 2026, subject to customary closing conditions and applicable regulatory approvals.
About Dotmatics
Dotmatics is a leading provider of scientific R&E software that connects science, data and decision-making. Its enterprise R&E platform and applications, including GraphPad Prism, SnapGene and Geneious, increase efficiency and accelerate innovation. Over 2 million scientists and more than 14,000 customers trust Dotmatics to help them create a healthier, cleaner and safer world. Dotmatics consists of a global team of more than 800 colleagues who support their customers in over 180 countries. The company is headquartered in Boston and has 14 offices and R&D teams around the world.
About Siemens
Siemens AG is a leading technology company with a focus on the fields of industry, infrastructure, mobility and healthcare. The company’s mission is to develop technology that improves everyday life for everyone. By connecting the real world with the digital world, it enables customers to accelerate their digital and sustainable transformation. This makes factories more efficient, cities more liveable and transportation more sustainable. Siemens is the majority owner of the listed company Siemens Healthineers, a global leader in medical technology that is pioneering healthcare. For every person. Everywhere. Sustainably.
In fiscal year 2024, which ended on September 30, 2024, the Siemens Group generated revenue of €75.9 billion and profit after tax of €9.0 billion. As at September 30, 2024, the company employed around 312,000 people worldwide on a continuing basis.
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Further links
👉 www.siemens.com
Photo: Siemens
