Siemens Acquires US-Based Dotmatics for $5.1 Bn to Boost AI-Driven Drug Discovery

Siemens stated that the acquisition aligns with its broader vision of leveraging artificial intelligence to accelerate medication development.

Germany's Siemens has announced the acquisition of Dotmatics, a US-based software company, for $5.1 billion as part of its strategy to expand into life sciences and enhance AI-driven drug discovery.

Siemens stated that the acquisition aligns with its broader vision of leveraging artificial intelligence to accelerate medication development, particularly as aging populations drive the demand for new treatments.

The company highlighted that digital transformation is becoming crucial in the pharmaceutical sector, with global software spending expected to double in the next five years.

The German conglomerate expects Dotmatics to be immediately profitable, generating an annual revenue of $100 million in the mid-term, with projections to reach $500 million in the long term.

The transaction is expected to close in the first half of next year.

Founded in 2005, Dotmatics has a workforce of 800 employees and is recognized as a leader in R&D software. Its platform integrates AI technology to enhance drug research and development.

This acquisition follows Siemens' recent $10 billion purchase of Altair Engineering, another US-based AI software firm.

The company has been increasing investments in its software division, which has seen growth even as revenues from its factory digital products have slowed.

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