German technology giant Siemens AG has signed a definitive agreement to acquire Dotmatics, a leading provider of scientific software for life sciences research and development, for $5.1 billion from global software investor Insight Partners.

The acquisition is aimed at strengthening Siemens' position in the life sciences sector by combining its digital twin and artificial intelligence capabilities with Dotmatics' scientific intelligence platform and applications.

Thomas Swalla, chief executive officer of Dotmatics, said: "Following an exciting journey with Insight Partners, where Dotmatics achieved remarkable growth and portfolio expansion, we are thrilled to announce our new chapter with Siemens. 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."

Roland Busch, president and chief executive officer of Siemens AG, noted: "By acquiring Dotmatics, we're 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 emerged as a transformative force across various industries, and its application in life sciences is becoming increasingly important."

Boston-based Dotmatics employs more than 800 people across 14 offices worldwide and serves over 14,000 customers in more than 180 countries. The company is expected to generate more than $300 million in revenue in 2025, with an adjusted EBITDA margin above 40 per cent.

The transaction will be financed primarily through the sale of shares in listed companies, including Siemens Healthineers. Siemens expects substantial revenue synergies, projecting medium-term revenue of around $100 million per year, accelerating to over $500 million per year in the long term.

This acquisition follows Siemens' recent $10.6 billion purchase of engineering software firm Altair, reflecting the company's strategic focus on expanding its industrial software capabilities. The life sciences sector represents a software market opportunity that could expand Siemens' industrial software total addressable market by $11 billion.

Jared Rosen, managing director at Insight Partners, which first invested in Dotmatics in 2017, commented: "The transition of Dotmatics from Insight Partners to Siemens represents a logical next step, empowering Dotmatics to further advance its mission of accelerating innovation within life sciences."

The transaction is expected to close following customary regulatory approvals and other closing conditions, likely in the first half of fiscal 2026.

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