Siemens acquires Dotmatics, shaking up the AI race in the pharmaceutical industry

Siemens expects Dotmatics to be immediately profitable, with annual revenue potentially increasing to $500 million over the long term, after the acquisition closes in the first half of next year.

On April 2, German conglomerate Siemens announced that it would acquire Dotmatics, an American software company leading in software research and development, for $5.1 billion to apply Artificial Intelligence (AI) in discovering new drugs.

In a statement, Siemens said the deal would complement the group's strategy in the life sciences sector, helping to strengthen its position in a medical market that is demanding strong innovation, especially in the context of an aging population.

The group stressed the need for digital transformation, saying spending on software is expected to double over the next five years.

Siemens expects Dotmatics to be immediately profitable, with revenues of about $100 million per year in the medium term and potentially rising to $500 million in the long term. The deal is expected to close in the first half of next year.

Siemens, Germany's second-largest conglomerate by market capitalization, is seeing strong revenue growth from its software division, while its digital products for factories are declining.

Siemens also recently acquired Altair Engineering, another US AI software company, for $10 billion./.

(Vietnam+)

Source: https://www.vietnamplus.vn/siemens-thau-tom-dotmatics-khuay-dao-cuoc-dua-ai-nganh-duoc-pham-post1024571.vnp