Siemens AG to Acquire Dotmatics for $5.1B, Expanding AI and Digital Capabilities in Life Sciences

German conglomerate Siemens AG has announced plans to acquire Dotmatics, a digital R&D platform developer, for $5.1 billion. This strategic move aims to bolster Siemens' industrial software business and enhance its artificial intelligence (AI) and digital twin capabilities in the life sciences sector.

Expanding Industrial Software Portfolio

The acquisition of Dotmatics is part of Siemens' ONE Tech Company growth program, designed to strengthen its position in industrial software. By integrating Dotmatics' platform, Siemens aims to provide customers with a more seamless connection between research and manufacturing through its product lifecycle management portfolio.

Siemens President and CEO Roland Busch emphasized the importance of this acquisition, stating, "Artificial Intelligence has emerged as a transformative force across various industries, and its application in Life Sciences is becoming increasingly important." The deal is expected to add approximately $11 billion to Siemens' total addressable market goals.

Dotmatics' Capabilities and Market Presence

Boston-based Dotmatics brings a wealth of expertise and market presence to the table. With over 800 employees, the company offers multiple applications, including:

• Automated data ingestion from lab instruments
• Predictive AI software
• A platform for the discovery and development of therapeutic antibodies and proteins

Dotmatics' solutions are currently used by more than 2 million scientists among 14,000 customers worldwide. The company has been expanding its portfolio, with plans to develop a multimodal suite spanning various cutting-edge therapies, including antibody-drug conjugates, CRISPR-based treatments, CAR-T cell therapies, siRNA drugs, and vaccines.

Financial Aspects and Future Outlook

Siemens CFO Ralf Thomas revealed that the acquisition would be partially financed through the sale of shares in other companies, including Siemens Healthineers. In February, Siemens raised approximately €1.45 billion ($1.5 billion) by selling about 2% of its shares in Siemens Healthineers, while retaining 73% control of the medtech company.

Thomas Swalla, CEO of Dotmatics, expressed enthusiasm about the merger, stating, "Combining our next-generation scientific intelligence platform and industry-leading scientific applications together with Siemens' Digital Twin and AI capabilities, we'll drive a new wave of innovation in life sciences R&D."

As the pharmaceutical and life sciences industries continue to embrace digital transformation, this acquisition positions Siemens to play a pivotal role in shaping the future of R&D and manufacturing processes in these sectors.