Strategic Expansion in Life Sciences
Siemens plans to finance the transaction primarily through share sales, including shares of its healthcare subsidiary Siemens Healthineers (SHLG.DE), according to CFO Ralf Thomas.
The deal follows last week’s closure of Siemens’ $10.6 billion purchase of engineering software firm Altair, marking its second-largest acquisition to date.
Dotmatics, a leader in cloud-based scientific intelligence platforms, is projected to generate over $300 million in revenue by 2025 with an adjusted EBITDA margin exceeding 40%.
The acquisition aligns with Siemens’ Xcelerator initiative, which integrates AI and digital twin technologies to enhance product lifecycle management (PLM) software.
Executive Vision: Accelerating Innovation
“This acquisition strategically strengthens our position in life sciences and creates a world-leading AI-powered PLM portfolio,” said Siemens CEO Roland Busch. He emphasized the transformative role of AI in bridging research and manufacturing, enabling customers to “innovate faster.”
Dotmatics CEO Thomas Swalla highlighted synergies with Siemens’ resources, stating the merger would “drive a new wave of innovation” by connecting scientific data with industrial execution.
The combined entity aims to streamline R&D processes, from molecule discovery to production, through an end-to-end digital thread.
Insight Partners’ Exit and Growth Legacy
Insight Partners, which acquired Dotmatics in 2017, facilitated 14 strategic add-ons during its ownership. Managing Director Jared Rosen praised Dotmatics’ growth trajectory, noting the deal’s logic in scaling its mission under Siemens’ global infrastructure.
Financial and Market Impact
Siemens anticipates annual revenue synergies of 100 million in the medium term, escalating to over 100 million in the medium term, escalating to over 500 million long-term.
The move expands Siemens’ industrial software total addressable market (TAM) by $11 billion, capitalizing on life sciences’ rapid digitization.
Regulatory and Advisory Details
The transaction, advised by Evercore and Willkie Farr & Gallagher LLP for Dotmatics, awaits customary regulatory approvals.
About the Companies
- Dotmatics: Serving 14,000 customers, including 2 million scientists globally, Dotmatics’ software suite includes GraphPad Prism and SnapGene. It employs 800+ staff across 14 offices.
- Siemens: The Munich-based conglomerate reported €75.9 billion in fiscal 2024 revenue, with a focus on industry, infrastructure, and healthcare tech.
- Insight Partners: A top software investor with $90B+ in assets, Insight has backed 800+ companies, including 55 IPOs
(Note: Forward-looking statements in the original release have been condensed for brevity. Full details available in Dotmatics’ official statement.)
