The deal extends Siemens’s artificial-intelligence-powered product-lifecycle-management portfolio and increases the company’s total addressable market in industrial software by $11 billion.

With its acquisition of Dotmatics, a developer of software for managing data in life sciences research, Siemens hopes to help cut drug development costs.

Siemens (SIEGY) announced that it has signed an agreement to acquire Dotmatics, a provider of Life Sciences R&D software based in Boston,

Germany's Siemens on Wednesday said that it has signed an agreement to acquire research and development software provider Dotmatics for $5.1 billion. According to Siemens, Boston-based Dotmatics is expected to generate more than $300 million in revenue in fiscal year 2025 and is "highly profitable.

Shares in German industrial giant Siemens ( SIEGY -6.48%) were down by more than 6% in trading as of 3 p.m. ET Thursday due to the tariffs imposed on foreign countries by the Trump administration. As a global company with interlinked supply chains that span the globe, Siemens is notably exposed to tariff actions and trade conflicts.

Siemens AG has agreed to acquire Dotmatics for $5.1 billion as part of a push to provide more artificial intelligence software to life sciences companies.