MUNICH -- Siemens has signed an agreement to acquire Supplyframe, a design-to-source platform for the electronics value chain, for $700 million, the companies said today.

The transaction is subject to customary conditions and is expected to close in fourth quarter of fiscal 2021.

Founded in 2003, Supplyframe is headquartered in Pasadena, CA, and has expected fiscal 2021 revenue of about $70 million with profit margins typical for the software business.

Siemens expects to realize "significant synergies" between Supplyframe’s capabilities and its own portfolio, with an expected mid-triple digit net present value. The deal is expected to be accretive to earnings in the second year after closing. Steve Flagg of Supplyframe will continue as CEO of the company and join the Siemens Digital Industries Software senior leadership team.

In a press release, the firms said 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 electronic design automation and printed circuit boards, 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 voard of Siemens. “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," said Steve Flagg, CEO and founder, Supplyframe. "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.” 

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