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

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.

Siemens AG said on Wednesday it will acquire U.S.-based Dotmatics for $5.1 billion from private equity firm Insight Partners to strengthen its Life Sciences portfolio. Financing for the deal would be primarily carried by share sales of listed companies,