Siemens eyes substantial synergies from USD5.1 billion Dotmatics deal

2nd April 2025 20:30

(Alliance News) - Siemens AG on Wednesday said it has agreed to acquire Dotmatics, a provider of Life Sciences R&D software based in Boston, for USD5.1 billion from Insight Partners.

The Munich-based technology conglomerate said the deal drives "strong revenue synergies and is highly profitable and cash generative."

Dotmatics is expected to generate more than USD300 million revenue in financial year 2025 and is highly profitable and cash generative with an adjusted earnings before interest, tax, depreciation and amortisation margin of above 40%, Siemens said.

The acquired company's mid-teens revenue growth and high profitability will be immediately accretive to growth, Ebitda margin and free cash flow, prior to any synergies, Siemens added.

Siemens expects "substantial" revenue synergies and sees medium-term revenue synergies of around USD100 million per year, accelerating to over USD500 million per year in the long-term.

Financing will be provided primarily through the sale of shares in listed companies, including Siemens Healthineers AG said Ralf Thomas Siemens chief finance officer.

The deal is expected to close in the first half of 2026.

Dotmatics is a leader in R&D scientific software connecting science, data, and decision-making. It has a global team of more than 800 in over 180 countries. The company is headquartered in Boston, with 14 offices and R&D teams located around the world.

Siemens said the deal increases its industrial software total addressable market by USD11 billion and aligns with its strategic goal to accelerate customer innovation across industries.

"This acquisition represents a strategic milestone for Siemens, expanding its comprehensive Digital Twin technology and AI-powered software into this rapidly growing complementary market. The US company offers a market leading platform with a highly profitable portfolio of scientific applications and multimodal data management for Life Sciences R&D," the company said in a statement.

Shares in Siemens closed unchanged at EUR214.75 in Frankfurt on Wednesday.

Siemens Healthineers closed down marginally at EUR50.10.

By Jeremy Cutler, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Get more news and expert articles direct to your inbox