Siemens Set to Acquire Supplyframe
Siemens is set to reinforce its digital marketplace strategy with the $700m acquisition of US supply chain software provider Supplyframe.
The deal, which is a 10x multiple on Supplyframe's $70m in revenue is expected to close by the end of 2021. Neither Siemens nor Supplyframe have disclosed specific information on how the purchase price of $700m has been calculated and if competitors were involved.
Siemens believes that using Supplyframe's marketplace intelligence and supply chain management solutions will help its customers cut costs, boost agility, and make more informed decisions. In the global electronics value chain, the agreement also brings 10 million customers who design, source, market, and sell products.
In 2010 Supplyframe bought the search platform findchips.com, which will give Siemens an insight into which electronic components are currently being sought by whom and who can deliver.
Siemens Digital Industries will offer the software as a service (SaaS) capability alongside its Xcelerator range of products in addition to the PCB, EDA, system and software design tools.
"We are very pleased to welcome Supplyframe’s highly innovative and talented team to the Siemens family. Supplyframe will be the nucleus to accelerate our overall digital marketplace strategy,” commented Cedrik Neike, a part of the Managing Board of Siemens. "Supplyframe’s ecosystem and marketplace intelligence complements our industrial software portfolio perfectly and strengthens our capabilities for the growing market of small- and mid-size customers.”
“Eighteen years ago, we set out on a journey to intelligently connect the extended electronics value chain. It took both a dedicated team and a visionary customer base to gradually turn our vision into reality. This process has been further accelerated by the recent component shortage environment, which has exposed the fragility of supply chains and created a mandate for digital transformation and intelligent decision making. I am thrilled to join forces with Siemens to scale our innovation and drive broader adoption of our DSI solutions globally. This is an amazing outcome for our customers, partners and employees," said Steve Flagg, CEO and creator of Supplyframe, who will stay CEO and join the senior leadership team of Siemens Digital Industries.
Supplyframe, founded in 2003, is headquartered in Pasadena, California, with offices in France, Serbia, China and the UK.