Siemens to acquire Dotmatics in $5.1 billion deal in Life Science portfolio push

(Reuters) -Siemens AG said on Wednesday it will acquire U.S.-based Dotmatics for $5.1 billion from private equity firm Insight Partners to strengthen its Life Sciences portfolio.

Financing for the deal would be primarily carried by share sales of listed companies, including healthcare subsidiary Siemens Healthineers, its finance chief Ralf Thomas said in a statement.

Life Sciences presents a software market opportunity and could expand Siemens' industrial software total addressable market by $11 billion, the statement added.

Last week, the German company closed its second biggest acquisition of engineering software firm Altair for $10.6 billion after selling a $1.5 billion stake in Siemens Healthineers.

"By acquiring Dotmatics, we're strategically strengthening our position in Life Sciences and creating a world-leading AI-powered PLM software portfolio as part of Siemens Xcelerator," CEO Roland Busch said.

Siemens said it expects substantial revenue synergies for medium-term revenue of around $100 million per year, accelerating to over $500 million per year in the long term.

Boston, Massachusetts-based Dotmatics is an R&D scientific software company, which is expected to generate more than $300 million in revenue in 2025, with an adjusted EBITDA margin of above 40%.

(Reporting by Urvi Dugar; Editing by Alan Barona)