Siemens accelerates digital marketplace strategy with acquisition of Supplyframe

Siemens has signed an agreement to acquire Supplyframe, a leading Design-to-Source platform for the global electronics value chain, for USD 0.7 billion. 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. This will help customers to reduce costs, increase agility and make highly informed decisions. 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.

"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 strong 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 will realize significant synergies between Supplyframe’s capabilities and its own portfolio with an expected USD mid-triple digit net present value. EPS accretive pre-ppa in second year after closing. Steve 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, 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.
Closing of the transaction is subject to customary conditions and is expected in the fourth quarter of fiscal year 2021.

Siemens Digital Industries Software is driving transformation to enable a digital enterprise where engineering, manufacturing and electronics design meet tomorrow. The company’s Siemens Xcelerator portfolio helps companies of all sizes create and leverage digital twins that provide organizations with new insights, opportunities and levels of automation to drive innovation. For more information on Siemens Digital Industries Software products and services, visit www.sw.siemens.com or follow us on LinkedIn, Twitter, Facebook and Instagram. Siemens Digital Industries Software – Where today meets tomorrow.

Siemens Digital Industries (DI) is an innovation leader in automation and digitalization. Closely collaborating with partners and customers, DI drives the digital transformation in the process and discrete industries. With its Digital Enterprise portfolio, DI provides companies of all sizes with an end-to-end set of products, solutions and services to integrate and digitalize the entire value chain. Optimized for the specific needs of each industry, DI’s unique portfolio supports customers to achieve greater productivity and flexibility. DI is constantly adding innovations to its portfolio to integrate cutting-edge future technologies. Siemens Digital Industries has its global headquarters in Nuremberg, Germany, and has around 76,000 employees internationally.

Notes and forward-looking statements

This document contains statements related to our future business and financial performance and future events or developments involving Siemens that may constitute forward-looking statements. These statements may be identified by words such as “expect,” “look forward to,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “estimate,” “will,” “project” or words of similar meaning. We may also make forward-looking statements in other reports, in prospectuses, in presentations, in material delivered to shareholders and in press releases. In addition, our representatives may from time to time make oral forward-looking statements. Such statements are based on the current expectations and certain assumptions of Siemens’ management, of which many are beyond Siemens’ control. These are subject to a number of risks, uncertainties and factors, including, but not limited to, those described in disclosures, in particular in the chapter Report on expected developments and associated material opportunities and risks of the Annual Report, and in the Half-year Financial Report, which should be read in conjunction with the Annual Report. Should one or more of these risks or uncertainties materialize, events of force majeure, such as pandemics, occur or should underlying expectations including future events occur at a later date or not at all or assumptions prove incorrect, actual results, performance or achievements of Siemens may (negatively or positively) vary materially from those described explicitly or implicitly in the relevant forward-looking statement. Siemens neither intends, nor assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated.

This document includes – in the applicable financial reporting framework not clearly defined – supplemental financial measures that are or may be alternative performance measures (non-GAAP-measures). These supplemental financial measures should not be viewed in isolation or as alternatives to measures of Siemens’ net assets and financial positions or results of operations as presented in accordance with the applicable financial reporting framework in its Consolidated Financial Statements. Other companies that report or describe similarly titled alternative performance measures may calculate them differently.

Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.