Siemens to acquire life sciences software leader Dotmatics for $5.1bn

Published 03/04/2025, 12:48
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Investing.com -- Siemens (ETR:SIEGn) has unveiled plans to acquire Dotmatics, a leading provider of research and development (R&D) software for the life sciences industry.

The deal, valued at $5.1 billion, is expected to close in the first half of fiscal 2026, between October 2025 and March 2026.

The acquisition of Dotmatics will expand Siemens’ Product Lifecycle Management (PLM) portfolio into the life sciences sector.

This move aims to create a seamless connection between R&D and manufacturing processes, thereby increasing Siemens’ market reach by an additional $11 billion.

RBC has commented on the planned acquisition, highlighting the strategic soundness of expanding Siemens’ software capability. This expansion has been a key factor in Siemens DI’s ability to deliver growth that outpaces its competitors over the past 5-10 years. Their track record shows a 200-300 basis points per annum growth compared to their peers.

However, RBC also posed a question regarding the potential impact of the acquisition on Siemens’ group valuation. The outcome will depend on the decision around the ongoing ownership of Healthineers, which could free up €34 billion or more of balance sheet capacity.

If this happens, it remains to be seen whether the software M&A will contribute to the group’s valuation in the near term or become another undervalued part of the Siemens’ sum-of-the-parts (SOTP) valuation.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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