Siemens expands AI-driven pharma software portfolio, integrating Dotmatics’ platform to connect drug research, development, and manufacturing digitally.
NÜRNBERG / GERMANY - APRIL 7, 2019: Siemens Logo on an office building in Nürnberg. Siemens is a German engineering company | Image Credit: © filmbildfabrik - stock.adobe.com
Siemens AG has completed its $5.1 billion acquisition of Boston-based Dotmatics, a provider of research and development software for the life sciences sector (1). The deal brings Dotmatics under the umbrella of Siemens’ Digital Industries Software division and marks a significant expansion of Siemens’ artificial intelligence (AI)-driven product lifecycle management (PLM) portfolio into the life sciences domain.
Originally announced in April 2025 (2), Siemens described the transaction as a “strategic milestone” that aligns with structural changes in healthcare—such as aging populations, broader access to medical care, and increasing demand for collaborative, data-integrated R&D environments (1). The acquisition is part of Siemens’ ONE Tech Company strategy, aimed at enhancing digital capabilities across high-growth industrial sectors.
·Siemens’ acquisition of Dotmatics enhances AI-driven drug development, connecting R&D to manufacturing through a unified digital thread.
·Dotmatics’ Scientific Intelligence Platform will streamline pharmaceutical workflows, accelerating discovery, development, and production cycles.
·Pharma manufacturers gain access to Siemens’ expanded digital twin and PLM tools, enabling scalable, data-integrated, and compliant operations.
“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,” said Roland Busch, president and CEO of Siemens AG (2). “Artificial intelligence has emerged as a transformative force across various industries, and its application in life sciences is becoming increasingly important.”
The Dotmatics platform centers around its Scientific Intelligence Platform, Luma, which supports AI-powered, multimodal drug development and data contextualization (1). The software facilitates seamless collaboration, connects previously siloed data across R&D and manufacturing, and creates a continuous digital thread through the pharmaceutical development lifecycle.
“With Dotmatics, we’re building a new era of innovation in Life Sciences,” said Busch. “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. 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.”
For Siemens, the acquisition opens up an additional $11 billion in total addressable market within industrial software (1). Dotmatics is expected to generate more than $300 million in revenue in fiscal year 2025. Siemens projects medium-term revenue synergies of around $100 million annually, scaling up to more than $500 million in the longer term. The acquisition is expected to be immediately accretive to growth, profitability, and cash flow.
“The acquisition of Dotmatics drives strong revenue synergies and is highly profitable and cash generative,” said Ralf P. Thomas, chief financial officer of Siemens AG (2). “Financing will be provided primarily through the sale of shares in listed companies, including Siemens Healthineers.”
The transaction also reflects the evolution of Dotmatics itself. Formerly known as Insightful Science, the company rebranded as Dotmatics in April 2022 following its acquisition of Protein Metrics and a period of expansion under the ownership of Insight Partners (2). Thomas Swalla, CEO of Dotmatics, emphasized the strategic alignment in the press release announcing the deal.
“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,” said Swalla (2). “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.”
The Dotmatics acquisition follows closely on the heels of Siemens’ $10 billion acquisition of Altair Engineering, completed in April (3). That deal brought new simulation, high-performance computing, and AI capabilities into Siemens’ industrial software offerings and was similarly integrated into the Siemens Xcelerator platform.
“We welcome the Altair community of customers, partners and colleagues to Siemens,” Busch said at the time of that acquisition (3). “Adding Altair’s groundbreaking innovations to the Siemens Xcelerator platform will create the world's most complete AI-powered design, engineering and simulation portfolio.”
Together, these back-to-back deals underscore Siemens’ aggressive push into domains in which digital twin technology, data integration, and AI are reshaping complex product development. With Dotmatics and Altair, Siemens now commands an expanded portfolio capable of supporting highly regulated industries like pharmaceuticals with the digital tools needed to meet rising demand, tighter timelines, and greater product complexity.
References
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