Siemens acquires electronics supply chain provider Supplyframe: Rapid analysis [PRO]

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Siemens AG, a global technology provider, announced the acquisition of Supplyframe, a provider of the Design-to-Source Intelligence (DSI) platform for the global electronics value chain.

In a press release announcing the acquisition, the companies said the $700 million deal will allow customers access to both Siemens’ offerings and Supplyframe’s market intelligence. The companies will aim to help clients reduce costs, increase agility and make informed decisions. The deal strengthens Siemens’ portfolio with new capabilities in SaaS.

Supplyframe’s DSI platform is home to over 10 million engineering and supply chain professionals worldwide, providing options for businesses to design, source, market and sell products in the global electronics supply chain. Its expected revenue for 2021 is $70 million.

“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,” Cedrik Neike, member of the Managing Board of Siemens AG, said in the press release. “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.”

This Spend Matters Rapid Analysis research brief explores valuation considerations, the rationale for the combination, the increasing intersection between product lifecycle management (PLM) and direct materials procurement, and the rise of supplier/product intelligence as a critical required capability for procurement organizations — and by extension design engineering and supply chain teams. This brief also explores broader market and supply chain implications of bringing the combined assets togethers. To learn more about Supplyframe’s direct materials procurement capabilities, we recommended starting with a recent PRO Vendor Analysis on the provider which you can find here and here.

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