MUNICH and NUREMBERG, Germany — Siemens AG has announced the successful completion of two acquisitions: Dotmatics, and ebm-papst.
Siemens AG announced that it has completed the acquisition of Dotmatics, a leading provider of Life Sciences R&D software headquartered in Boston and the portfolio company of global software investor Insight Partners, for an enterprise value of $5.1 billion. With the transaction now completed, Dotmatics will form part of Siemens’ Digital Industries Software business, marking a significant expansion of Siemens’ industry-leading Product Lifecycle Management (PLM) portfolio into the rapidly growing and complementary Life Sciences market.
The acquisition of Dotmatics strengthens Siemens’ position as a global leader in AI-powered PLM software and enables Siemens to scale its technologies into Life Sciences to fully address growth opportunities in this market. Dotmatics’ Scientific Intelligence Platform, Luma, and its industry-leading scientific applications enable AI-powered multi-modal drug development, seamless collaboration, and contextualized data creating a connected digital thread across the research-to-production value chain.
“With Dotmatics, we’re building a new era of innovation in Life Sciences. From research through to production – we’re creating a unique, end-to-end digital thread: We combine Dotmatics’ scientific intelligence with our industrial AI technologies and digital twins,” said Roland Busch, President and CEO of Siemens AG. “This will allow us to help our customers accelerate breakthroughs, reduce development cycles, and bring life-saving pharmaceuticals faster and more affordably to the market.”
This transaction expands Siemens’ total addressable market for industrial software by $11 billion and aligns with ‘ONE Tech Company’, the company’s strategic growth program, aimed at accelerating innovation and creating value across industries. Dotmatics is expected to generate more than $300 million in revenue in fiscal year 2025 with an adjusted EBITDA margin above 40 percent, further enhancing Siemens’ growth profile. Dotmatics’ revenue growth and high profitability will be immediately accretive to Siemens’ growth, EBITDA margins and free cash flow, prior to any synergies and special items. Siemens expects substantial revenue synergies: Medium-term revenue synergies expected of around $100 million per year accelerating to over $500 million per year in the long-term.
Meanwhile, Siemens AG closed its acquisition of ebm-papst’s industrial drive technology business. In the future, it will be marketed using the name “Mechatronic Systems” at Siemens. The business has about 650 employees and its portfolio includes intelligent, integrated mechatronic systems in the extra-low voltage protection range, innovative driving systems used in free-moving, driverless transport systems, and other applications. This acquisition complements the Siemens Xcelerator portfolio, strengthening Siemens’ position as a leading provider of flexible manufacturing automation solutions. Integrating the new portfolio into the existing automation portfolio and leveraging Siemens’ global sales network will open up new markets and significant business potential in the field of intelligent, battery-powered drive and robot solutions.
“The new portfolio elements significantly expand and enhance our offerings to customers who want to automate and digitalize their production processes in smart factories. Our integrated mechatronic drive systems offer increased flexibility, productivity and efficiency in the growing global market for conveyor and autonomous transport systems, including mobile robots, driverless transport systems and shuttles,” explains Achim Peltz, CEO of the Motion Control Business Unit at Siemens Digital Industries. Their seamless compatibility with Simatic controllers and the software-based safety solution Safe Velocity for mobile robotics offer extra advantages.
The expanded portfolio includes two main variants: the Simotics E-1EE1 (brushless internal rotors), which are particularly suitable for battery-powered conveying, storage and sorting systems; and the Simotics E-1EV1 (brushless outrunners), which impress with their high efficiency and compact design in intralogistics applications. The portfolio is available in 24 V and 48 V versions. The portfolio also offers transmission solutions, which are only available in conjunction with Simotics E motors. A notable innovation is the Simotics E ArgoDrive driver steering system, which was specially developed to meet the growing demands of intralogistics and automated production. Available in Light, Standard and Heavy variants, it enables the safe and precise omnidirectional control of automated guided vehicles, even when carrying heavy loads.
These systems support Siemens’ sustainability goals by providing energy-efficient solutions and helping create flexible, scalable and secure digital factories. The newly integrated business comprises three locations: two in Germany (St. Georgen and Lauf an der Pegnitz) and one in Romania (Oradea).
The ebm-papst Group first announced its intention to sell its Industrial Drive Technology (IDT) division to Siemens AG in March of 2024, and both parties signed an agreement to this effect. The sale to Siemens AG has now been completed, giving IDT access to the international market through Siemens’ global Sales organization. This creates new opportunities for innovation and continued business growth. All of the division’s employees have been taken on by Siemens. The parties involved have agreed to not disclose the price.
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