The acquisition will help Siemens boost its digital marketplace capabilities with Supplyframe's supply chain management tools and marketplace intelligence. Here are the top-line bullets you need to know.
Industrial and manufacturing giant Siemens has acquired Supplyframe, a design-to-source intelligence (DSI) platform, for $700M. The deal is expected to be complete by Q4’21.
WHO ARE THE PARTIES TO THE DEAL?
- Supplyframe: California-based Supplyframe is a design-to-source intelligence platform with over 10M engineering and supply chain experts. The platform assists organizations in designing, sourcing, marketing, and selling products in the global electronics value chain. Supplyframe, which has offices in the US, China, France, Serbia, and the UK, expects to generate revenue of $70M for the fiscal year 2021.
- Siemens: Munich-based Siemens is an industrial manufacturing company that provides infrastructure, energy, rail automation, wind power, and software solutions. It also manufactures medical diagnosis equipment. As of September 2020, the company reported a revenue of €57.1B ($69.58B). It has around 293,000 employees worldwide.
Source: Supplyframe
WHY DOES THE MARKET MATTER?
The acquisition materialized in the supply chain management space where:
- The supply chain management market is projected to grow at a CAGR of 11.2% and reach a value of $37.41B by 2027, according to Valuates Reports.
- While the physical commodities market is a $4T industry, the supply chain process is rudimentary. Additionally, climate change, the Suez Canal-Evergiven incident, and Covid-19 disruptions have all led to increased opportunities for growth and innovation in the sector.
