Siemens (SIEGY.US) buys Dotmatics for $5.1 billion to expand the AI life science circuit

The Zhitong Finance App learned that German industrial giant SIEGY.US (SIEGY.US) has agreed to acquire Dotmatics for 5.1 billion US dollars as part of a strategic move to provide life science companies with more artificial intelligence software.

The German company announced an acquisition deal for the R&D software manufacturer supported by Insight Partners in a statement released on Wednesday. Siemens said the deal is expected to close in the first half of fiscal year 2026.

Thomas Swalla, CEO of Dotmatics, said in another statement: “By combining our next-generation scientific intelligence platform, industry-leading scientific applications, and Siemens' digital twins and artificial intelligence capabilities, we will set off a new wave of innovation in life sciences research and development.”

The deal comes as Insight is in the process of selling other companies in its portfolio to strategic buyers. Last month, Google (GOOGL.US) agreed to acquire Wiz Inc., a cloud security company supported by Insight. At the same time, CoreWeave (CRWV.US) announced that it would acquire the artificial intelligence development platform Weights & Biases, and ROP.US (ROP.US) also indicated that it would acquire CentralReach.

Boston-based Dotmatics was founded in 2005 by MSD (MRK.US) scientists Stephen Gallagher and Alastair Hill. According to the company's official website, more than 2 million scientists in 125 countries around the world use its software, which helps digitize laboratory data, enhance collaboration, and analyze research results.

According to Insight's official website, the New York-based venture capital and private equity firm first invested in Dotmatics in 2017. According to reports at the time, a fund backed by Insight agreed to buy the then UK-based company for up to £500 million (US$648 million) in 2021. Reports at the end of last year said that Insight is exploring various development options for Dotmatics.

Insight Managing Director Jared Rosen said in an email statement: “Dotmatics's transfer from Insight Partners to Siemens is a logical development process that will enable Dotmatics to further advance its mission to accelerate innovation in life sciences.” Last year, Insight achieved $8 billion in revenue by selling companies such as Jama Software, Recorded Future, OWN, and WalkMe.

Evercore acted as Domatics' exclusive financial advisor in this transaction.

According to compiled data, out of hundreds of acquisitions in Siemens's 100-year history, this deal ranked sixth. Last year, Siemens bought Altair Engineering for about $10 billion, including debt. This was the largest acquisition in Siemens' history.