MUNICH, July 1, 2025 — In a strategic move to bolster its presence in the life sciences sector, Siemens AG has announced the completion of its acquisition of Dotmatics, a Boston-based leader in life sciences R&D software. The acquisition, valued at $5.1 billion, marks a significant expansion of Siemens’ digital capabilities, particularly in the realm of AI-powered product lifecycle management (PLM) software.
With this acquisition, Dotmatics will integrate into Siemens’ Digital Industries Software business, enhancing Siemens’ portfolio with a comprehensive digital thread that connects data from research through to production. This move is expected to accelerate scientific innovation and drive long-term growth in the life sciences industry.
Strategic Expansion into Life Sciences
The acquisition of Dotmatics is a pivotal step in Siemens’ ONE Tech Company program, which aims to expand the company’s offerings into the life sciences industry. This expansion is characterized by a stronger customer focus, faster innovations, and higher profitable growth. By integrating Dotmatics’ Scientific Intelligence Platform, Luma, Siemens aims to create a seamless digital ecosystem that supports multi-modal drug development and enhances collaboration across the research-to-production value chain.
Roland Busch, President and CEO of Siemens AG, emphasized the transformative potential of this acquisition, stating, “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.”
Financial Implications and Market Opportunities
This acquisition not only expands Siemens’ total addressable market for industrial software by $11 billion but also aligns with its strategic growth initiatives. Dotmatics is projected to generate over $300 million in revenue for fiscal year 2025, with an adjusted EBITDA margin exceeding 40 percent. These metrics are expected to be immediately accretive to Siemens’ growth, enhancing EBITDA margins and free cash flow even before accounting for synergies.
Siemens anticipates substantial revenue synergies, with medium-term expectations of around $100 million per year, accelerating to over $500 million annually in the long term.
Impacts on the Industry and Future Prospects
The acquisition underscores Siemens’ commitment to leveraging AI and digital technologies to transform industries. By incorporating Dotmatics’ capabilities, Siemens is poised to make significant contributions to the life sciences sector, particularly in accelerating the development and market introduction of life-saving pharmaceuticals.
According to industry analysts, this acquisition positions Siemens as a formidable player in the life sciences market, complementing its existing strengths in industrial AI and digital twin technologies. The integration of Dotmatics’ platforms is expected to enhance Siemens’ ability to offer comprehensive solutions that address the complex challenges of modern drug development and production.
Conclusion and Forward-Looking Statements
As Siemens continues to integrate Dotmatics into its operations, the company remains focused on driving innovation and creating value across industries. The acquisition is a testament to Siemens’ strategic vision of combining the real and digital worlds to empower customers and transform everyday technology applications.
Siemens’ forward-looking strategy, bolstered by this acquisition, highlights its commitment to sustainability and efficiency across its diverse portfolio, from industrial applications to healthcare innovations. The company remains optimistic about the potential of AI and digital technologies to revolutionize the life sciences sector and beyond.
For more information, visit Siemens’ official website at www.siemens.com.