Siemens Buys Supplyframe
Supplyframe to be the nucleus of Siemens’ digital marketplace strategy; closing of transaction expected in fourth quarter of fiscal year 2021.
May 20, 2021
Siemens has signed an agreement to acquire Supplyframe, a design-to-source platform for the global electronics value chain, for USD$0.7 billion. The transaction unlocks value for customers of Supplyframe and Siemens, providing quick access to Siemens’ offerings and Supplyframe’s marketplace intelligence, Siemens reports.
The acquisition also strengthens the Siemens portfolio through Software as a Service (SaaS)—not only in the field of electronic design automation (EDA) and printed circuit boards (PCB), but also scaling into other domains and technology fields.
“Supplyframe will be the nucleus to accelerate our overall digital marketplace strategy,” says Cedrik Neike, member of the managing board of Siemens AG. “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,” says Steve Flagg, CEO and founder of Supplyframe. “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,” said Steve Flagg, CEO and founder of Supplyframe.
Supplyframe has created a Design-to-Source Intelligence (DSI) ecosystem with over 10 million engineering and supply chain professionals worldwide, transforming how businesses design, source, market and sell products in the global electronics value chain, the company says.
Siemens will realize synergies between Supplyframe’s capabilities and its own portfolio with an expected USD mid-triple digit net present value. Flagg will continue as CEO of the company and join the Siemens Digital Industries Software senior leadership team.
Founded in 2003, Supplyframe is headquartered in Pasadena, CA, with offices in the USA, China, France, Serbia and the UK. The expected revenue of Supplyframe for the fiscal year 2021 is around $70 million with profit margins typical for the software business.
Closing of the transaction is subject to customary conditions and is expected in the fourth quarter of fiscal year 2021.
Sources: Press materials received from the company and additional information gleaned from the company’s website.
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