Siemens AG has announced plans to acquire U.S.-based R&D scientific software company Dotmatics for $5.1 billion from private equity firm Insight Partners. The acquisition aims to strengthen Siemens’ Life Sciences portfolio and expand its footprint in the industrial software market. The deal will primarily be financed through share sales of listed companies, including its healthcare subsidiary, Siemens Healthineers.

Siemens sees Life Sciences as a lucrative software market opportunity, estimating that the acquisition could expand its total addressable market in industrial software by $11 billion. The move follows Siemens’ recent $10.6 billion acquisition of engineering software firm Altair, finalized after selling a $1.5 billion stake in Siemens Healthineers.

Siemens CEO Roland Busch stated that acquiring Dotmatics will enhance the company’s position in Life Sciences and contribute to building an AI-powered PLM software portfolio under Siemens Xcelerator. The company expects significant revenue synergies, with medium-term annual revenue of approximately $100 million, which could exceed $500 million in the long term.

Dotmatics, based in Boston, Massachusetts, specializes in scientific software for research and development. It is projected to generate over $300 million in revenue by 2025, with an adjusted EBITDA margin exceeding 40%. With this acquisition, Siemens aims to integrate advanced AI-driven solutions into its Life Sciences portfolio, reinforcing its leadership in industrial and scientific software.

Disclaimer: This image is taken from Reuters.