Siemens Acquires Dotmatics, Extending AI Software Portfolio into Life Sciences

Siemens has announced an agreement to acquire Boston-based life sciences R&D software provider Dotmatics for $5.1 billion, saying the transaction is a “strategic milestone” that extends Siemens’ artificial intelligence (AI)-powered product lifecycle management (PLM) portfolio into the life sciences market (1).

In a press release on April 2, 2025, Siemens referred to life sciences as an “attractive complementary software market opportunity,” with the Dotmatics acquisition expanding the company’s industrial software total addressable market by $11 billion (1). Siemens said the market is driven by certain structural shifts: an increased need for medication by aging populations, improved access to medicine and new treatment options, and a desire for increased collaboration and visibility, all of which Siemens expects to double software spending in the next five years.

“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,” Roland Busch, president and CEO of Siemens AG, said in the release (1). “Artificial Intelligence has emerged as a transformative force across various industries, and its application in life sciences is becoming increasingly important. 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.”

“The acquisition of Dotmatics drives strong revenue synergies and is highly profitable and cash generative. Financing will be provided primarily through the sale of shares in listed companies, including Siemens Healthineers,” said Ralf P. Thomas, chief financial officer of Siemens, also in the release.

Shortly after acquiring Protein Metrics in December 2021, the company formerly known as Insightful Science rebranded itself to Dotmatics—which had been among Insightful Science’s portfolio of scientific R&D software solutions—in April 2022 (2,3).

“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 Thomas Swalla, CEO of Dotmatics, in the Siemens press release. “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. Together, we'll accelerate innovation cycles for our customers and help scientists make breakthrough discoveries faster than ever before shaping the future of scientific innovation.”

In December 2024, Pharmaceutical Technology®’s sister brand Pharmaceutical Executive® published a commentary from Stephen Tharp, Dotmatics senior vice-president, Customer Operations, suggesting how companies can optimize their AI budgets for the year ahead (4).

“We know most companies are spending money on AI—but are you spending it efficiently?” Tharp wrote (4). “Companies need a spend strategy or else costs will escalate without control. At its core, there are a few large drivers of cost when we think about AI, which include data, compute, and people (i.e., the scientists). You can’t simply dump data in a data lake. ‘Garbage in, garbage out’ is a tale as old as time. GenAI can’t deliver expected results unless a proper data architecture and infrastructure is in place. You want to maximize storage, compute, security, GPUs [graphics processing units], training, and storage costs. That means seeking out smart, integrated data strategies that enhance an organization's existing software spend.”

Click here for Tharp’s full article on the Pharmaceutical Executive® website.

References

1. Siemens. Siemens Acquires Dotmatics to Extend AI-Powered Software Portfolio to Life Sciences. Press Release. April 2, 2025.
2. Insightful Science. Insightful Science Acquires Protein Metrics to Expand its R&D Solution to Include Proteomics. Press Release. Dec. 21, 2021.
3. Dotmatics. Dotmatics, Previously Insightful Science, Set to Transform the Future of Scientific Software and Data Management. Press Release. April 26, 2022.
4. Tharp, S. Mastering Your AI Budget for 2025 Success. PharmExec.com, Dec. 11, 2024.