I have a couple of releases from Siemens. This company seems more active than its rivals this year. This one relates to a software acquisition. This brings to mind a couple of conversations I had with a Siemens executive many years ago. I told him my observation that Siemens had a terrible track record with acquisitions. He told me they had learned and would improve. Beginning with the UGS acquisition, they have integrated acquisitions much better. This should be good for them. And PLM seems to be a hot area currently.
In short:
- Acquisition of Dotmatics, a leader in Life Sciences R&D software for $5.1 billion
- Expands Siemens’ market-leading position in industrial software by extending AI-powered Product Lifecycle Management (PLM) portfolio into Life Sciences to seamlessly connect R&D through manufacturing
- Increases Siemens’ industrial software total addressable market by $11 billion; aligns with strategic goal to accelerate customer innovation across industries
- Acquisition is another milestone of Siemens’ ONE Tech Company program expanding the Siemens Xcelerator platform into Life Sciences software with stronger customers focus, faster innovations and higher growth
Siemens AG announces that it has signed an agreement to acquire Dotmatics, a leading provider of Life Sciences R&D software based in Boston, for $5.1 billion from Insight Partners. 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 multi-modal data management for Life Sciences R&D. The company’s offering accelerates customers’ innovation, delivering next generation collaboration and contextualized data to enable AI-powered multi-modal drug development.
“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”, said Roland Busch, President and CEO of Siemens AG. “The Dotmatics acquisition is part of our ONE Tech Company growth program, enhancing our leading position in industrial software and helping our customers to innovate even faster.”
Life Sciences presents an attractive complementary software market opportunity and expands Siemens’ industrial software total addressable market by $11 billion. This market is driven by structural shifts, such as increased medication need driven by aging societies and improved access to medicine, new treatment options from advancing science and the necessity for increased collaboration and visibility across complex value chains. These trends underscore the need for digital transformation, with software spending expected to double over the next five years.
Siemens’ expansion within Life Sciences aligns with its strategic goal to accelerate customer innovation across the top industries with the highest R&D spend. The acquisition is part of the investment track of Siemens’ ONE Tech Company program and following last week’s closing of Altair’s acquisition, yet another milestone. This growth program enables Siemens to further expand its market position and reach the next level of performance and value creation. Through acquisitions like this, as well as R&D investments into areas including software, AI-enabled products, connected hardware and sustainability, Siemens is clearly prioritizing capital allocation to strategic growth fields. The acquisition of Dotmatics enables Siemens to scale its technologies into Life Sciences and to fully address growth opportunities in this market. It will allow Siemens to combine its comprehensive manufacturing expertise, industrial simulation and AI capabilities with Dotmatics’ leading complementary applications, creating a first-of-its-kind end-to-end digital thread that connects data from research through to production in Life Sciences.
