The acquisition is part of Siemens' ONE Tech Company program, designed to integrate Dotmatics into the Siemens Xcelerator platform, thereby improving customer focus and innovation.

This acquisition marks Siemens' second billion-dollar deal in a few months, following the $10 billion purchase of Altair, another AI-focused software firm.

Siemens' focus on life sciences reflects a broader trend of traditional industrial companies integrating technology to foster sustainable growth and innovation.

Siemens AG has announced its acquisition of Dotmatics, a prominent player in Life Sciences R&D software, for $5.1 billion, which will enhance Siemens' AI-powered software portfolio.

This strategic move aims to accelerate customer innovation in sectors with significant R&D investments, aligning with Siemens' broader growth initiatives.

The transaction is expected to close in the first half of fiscal year 2026, pending necessary regulatory approvals.

Dotmatics, headquartered in Boston, serves over 14,000 customers globally and employs more than 800 staff, providing renowned applications like GraphPad Prism and Geneious.

Analysts predict that integrating Dotmatics will enable scientists to virtually simulate drug discovery methods, significantly reducing the need for physical experiments.

Following the acquisition announcement, Siemens' stock saw a modest increase of 0.25%, while shares of Siemens Healthineers and Siemens Energy experienced slight declines.

Siemens anticipates annual revenue synergies of around $100 million from Dotmatics, potentially increasing to over $500 million in the long term.

The acquisition is projected to expand Siemens' total addressable market in industrial software by $11 billion, driven by increasing medication needs and demand for collaboration.

To finance the acquisition, Siemens plans to reduce its stake in Siemens Healthineers from 75% to 70%, having already sold a portion of its shares for €1.45 billion.