Siemens has announced the acquisition of Dotmatics, a strategic move to enhance its AI-powered PLM software offerings within the Life Sciences sector as part of its Siemens Xcelerator initiative. According to Roland Busch, President and CEO of Siemens AG, the acquisition aims to "strategically strengthen our position in Life Sciences and create a world-leading AI-powered PLM software portfolio." Busch highlighted the transformative role of artificial intelligence across various industries, emphasizing its growing importance in Life Sciences.
Ralf P. Thomas, CFO of Siemens AG, remarked on the financial aspects of the acquisition, noting that it is "highly profitable and cash generative," with funding primarily derived from the sale of shares in companies like Siemens Healthineers. Thomas Swalla, CEO of Dotmatics, expressed enthusiasm for the future with Siemens, stating, "Together, we'll accelerate innovation cycles for our customers and help scientists make breakthrough discoveries faster than ever before shaping the future of scientific innovation."
The acquisition will enable Siemens to expand its industrial software market by $11 billion, driven by increased demand for medication, advancements in science, and the need for enhanced collaboration. With software spending expected to double over the next five years, Siemens' venture into Life Sciences aligns with its strategy to bolster innovation across industries with significant R&D investments.
Dotmatics is projected to generate over $300 million in revenue in fiscal year 2025, with a 40 percent adjusted EBITDA margin. Siemens anticipates revenue synergies amounting to approximately $100 million annually in the medium term, escalating to over $500 million per year in the long term. The transaction is expected to close in the first half of fiscal year 2026, pending regulatory approvals.
Dotmatics, headquartered in Boston, is recognized for its scientific software that connects science, data, and decision-making, catering to more than 14,000 customers globally. The company's enterprise R&D platform includes applications like GraphPad Prism, SnapGene, and Geneious, supporting over 2 million scientists worldwide.