Siemens in $700m Deal for US Design-to-Source Platform
Siemens hope that by combining with Supplyframe, it can enable customers to innovate and develop products faster.
Siemens has signed an agreement to acquire Supplyframe, a Design-to-Source platform for the global electronics value chain, for $0.7 billion. The company says the transaction unlocks significant value for customers of Supplyframe and Siemens, providing seamless and quick access to both Siemens’ offerings and Supplyframe’s marketplace intelligence.
The acquisition 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.
“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”, said 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. 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 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. Supplyframe’s SaaS offerings have been growing with ca. 40% p.a. over the last years, a rate that is expected to continue mid-term.
Siemens says the acquisition of Supplyframe will realize significant synergies between Supplyframe’s capabilities and its own portfolio with an expected mid-triple digit net present value. Steve Flagg will continue as CEO of the company and join the Siemens Digital Industries Software senior leadership team.
The closing of the transaction is subject to customary conditions and is expected in the fourth quarter of the fiscal year 2021.
Founded in 2003, Supplyframe is headquartered in Pasadena, California 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.
Siemens AG is a global technology powerhouse that has existed for more than 170 years. Active around the world, the company focuses on intelligent infrastructure for buildings and distributed energy systems and on automation and digitalization in the process and manufacturing industries.
You can find more information about Siemens and how it will acquire Supplyframe on its website.
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