The German manufacturer has been exiting heavy-equipment businesses and shifting its focus to software to improve profitability.

Germany group Siemens said on Wednesday it is buying Dotmatics, a US software company, for $5.1 billion to leverage its use of artificial intelligence to make drug discoveries.

Siemens AG—and that’s Siemens Siemens, not Siemens Healthineers—is expanding its industrial software business further into the life sciences, with a $5.1 billion plan to acquire digital R | The German conglomerate said the deal would not only add to its work in artificial intelligence and digital twins but would also help it provide customers with a more seamless connection between research and manufacturing.

Acquisition of Dotmatics, a leader in Life Sciences R&D software for $5.1 billion -- Expands Siemens' market-leading position in industrial software by extending AI-powered Product Lifecycle Management (PLM) portfolio into Life Sciences to seamlessly connect R&D through manufacturing -- Increases Siemens' industrial software total addressable market by $11 billion;

German industrial giant Siemens AG said today it will pay $5.1 billion to acquire the life sciences data startup Dotmatics in an effort to expand its artificial intelligence offerings. The company said the deal to acquire Dotmatics,

Siemens AG will acquire Dotmatics from global software investor Insight Partners for $5.1 billion -- Acquisition accelerates Dotmatics' mission to connect scientific discovery to delivery, expanding global scale and reach -- Unlocks new opportunities to combine Dotmatics' R&D software with Siemens' AI-powered Digital Twin technologies -- Represents a strong validation of Dotmatics' growth,