In May of 2021, we announced that Siemens is set to acquire Supplyframe for a total purchase price of $700 million. As part of this merger, our organization will remain an independent business segment, reporting into Siemens Digital Industries Software, with Steve Flagg remaining CEO.
As part of this strategic acquisition, Supplyframe is poised to become an integral part of Siemens digital marketplace strategy, leveraging our expansive Design-to-Source Intelligence (DSI) Network, Platform, and SaaS Solutions to reach more customers than ever. Read on to learn more about this exciting announcement, and where to find answers to all of your questions!
Siemens x Supplyframe: Announcement Overview
The news was released on May 17th, beginning with a full press release from Siemens detailing the merger. The release highlights Siemens’ plans to leverage supplyframe’s expertise and industry-leading DSI solutions to accelerate innovation across the industry.
Supplyframe is poised to become the “nucleus” of Siemens digital marketplace strategy, with the transaction expected to close in the fourth quarter of fiscal year 2021.
Supplyframe CEO Steve Flagg had this to say regarding the announcement:
“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.”
Cedrik Neike, member of the Managing Board of Siemens AG also expressed his excitement regarding the announcement, pointing to Supplyframe’s ability to complement and expand upon Siemens’ industrial software portfolio, while also strengthening the organization’s capabilities in the small and mid-sized customer market.
Beyond the initial feedback from both Supplyframe and Siemens leadership, other industry professionals saw the strategic benefits of this merger. Spend Matters prepared a Rapid Analysis report on the story, written by Pierre Mitchell and Jason Busch, offering some context as to how Supplyframe’s capabilities complement Siemens’ portfolio and digital strategies:
“Siemens needed to make this acquisition to not just support its own digital transformation with its SCM DigiNetwork effort, but also integrate across its legacy and current software solutions. Siemens acquired TeamCenter PLM from UGS and TeamCenter includes a direct materials sourcing application, but it’s decidedly aging, and Supplyframe brings a predominantly modern cloud application portfolio to bear. Supplyframe also has a lot of experience to bring product/component intelligence and content into the context of various design and sourcing applications, so this will help to inject this decision support and toolset into Siemens’ designer/customer base.”
We are incredibly excited to be joining forces with Siemens, and look forward to discovering additional synergies between our two organizations for the benefit of the electronics value chain as a whole.
For more information, links to external coverage, and answers to commonly asked questions about the merger, visit our dedicated Siemens announcement page on Supplyframe.com!