Siemens to buy Insight-backed Dotmatics for $5.1 billion
'Combining our next-generation scientific intelligence platform and industry-leading scientific applications together with Siemens' Digital Twin and AI capabilities, we'll drive a new wave of innovation in life sciences R&D,' Dotmatics Chief Executive Officer Thomas Swalla said in a separate statement.
Siemens shares declined as much as 5.3 percent in early trading in Frankfurt as US tariff announcements weighed on markets. The drop pared the stock's gain over the past year to about 16 percent.
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The transaction comes at a time when Insight is in the process of exiting other portfolio companies to strategic buyers. Last month, Alphabet Inc. agreed to buy Insight-backed cloud-security company Wiz Inc., while CoreWeave Inc. said it was acquiring AI developer platform Weights & Biases and Roper Technologies Inc. said it would acquire CentralReach.
Boston-based Dotmatics was founded in 2005 by Merck & Co. scientists Stephen Gallagher and Alastair Hill. More than 2 million scientists in 125 countries use its software, which helps to digitize lab data, enhance collaboration and analyze findings, according to the company's website.
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Insight, a New York-based venture capital and private equity firm, first invested in Dotmatics in 2017, according to its website. A fund backed by Insight agreed in 2021 to buy the company, then based in the UK, in a deal valued at as much as £500 million ($648 million). Bloomberg News reported late last year that Insight was exploring options for Dotmatics.
'The transition of Dotmatics from Insight Partners to Siemens represents a logical next step, empowering Dotmatics to further advance its mission of accelerating innovation within life sciences,' Jared Rosen, managing director at Insight, said in an emailed statement. Last year, Insight realized $8 billion from the sale of companies including Jama Software, Recorded Future, Own and WalkMe.
Evercore Inc. served as exclusive financial adviser to Dotmatics on the transaction.
The deal ranks as the sixth-biggest for Siemens out of hundreds of acquisitions over its century-plus history, according to data compiled by Bloomberg. Last year's deal for Altair Engineering Inc. for about $10 billion including debt stands as its largest acquisition.
With assistance from Michelle F. Davis.
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