Siemens AG has agreed to acquire US-based R&D software firm Dotmatics for $5.1bn from private equity firm Insight Partners, according to a report by Reuters.
The transaction represents a significant exit for Insight Partners, which acquired Dotmatics in 2017 and has since scaled the business through strategic investments and bolt-on acquisitions.
The deal highlights the increasing appetite among strategic buyers for high-growth software assets in the life sciences industry, where digital transformation and AI-powered research tools are becoming increasingly vital.
Financing for the acquisition will be supported primarily by share sales of listed Siemens entities, including its healthcare subsidiary Siemens Healthineers, according to Siemens CFO Ralf Thomas. The German conglomerate expects the deal to expand its total addressable market for industrial software by $11 billion, reinforcing its focus on digitaliaation within the life sciences space.
According to Roland Busch, CEO of Siemens, the company expects to generate medium-term revenue synergies of approximately $100m annually from the acquisition, increasing to over $500m in the long term.
Boston-based Dotmatics specialises in R&D scientific software solutions and is projected to generate over $300 million in revenue in 2025, with an adjusted EBITDA margin exceeding 40%.
