Siemens has finalized its acquisition of Dotmatics, a move that bolsters its standing as a leader in AI-powered PLM software. This acquisition enables Siemens to expand its technological reach into the Life Sciences sector, addressing growth opportunities within this market. Dotmatics is known for its Scientific Intelligence Platform, Luma, and scientific applications that support AI-driven drug development and facilitate collaboration across the research-to-production value chain.
"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," stated Roland Busch, President and CEO of Siemens AG. "This will allow us to help our customers accelerate breakthroughs, reduce development cycles, and bring life-saving pharmaceuticals faster and more affordably to the market."
The acquisition expands Siemens' addressable market for industrial software by $11 billion. It aligns with the company’s strategic growth program 'ONE Tech Company,' which focuses on accelerating innovation across industries. Dotmatics is projected to generate over $300 million in revenue for fiscal year 2025 with an adjusted EBITDA margin exceeding 40 percent. This financial performance is expected to enhance Siemens' growth profile immediately.
Siemens anticipates significant revenue synergies from this transaction. Medium-term synergies are expected to be around $100 million annually, increasing to over $500 million per year in the long term.