By Akanimo Sampson
International news agency, AFP, reports that German industrial giant, Siemens, has announced the $700 million acquisition of US firm, Supplyframe, a digital platform that specialises in connecting companies along the electronics supply chain.The deal, according to the news agency, is expected to close later this year.
The deal is coming as industrial firms are scrambling to cope with global semiconductor shortages spurred by increased demand for consumer electronics during the pandemic.
The acquisition will combine Siemens’ offerings with Supplyframe’s marketplace intelligence to “help customers to reduce costs, increase agility and make highly informed decisions”, Siemens said in a statement.
California-based Supplyframe was founded in 2003 and forecasts revenues of $70 million for this year.
“Eighteen years ago, we set out on a journey to intelligently connect the extended electronics value chain”, Supplyframe CEO and founder Steve Flagg said in the statement.
“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.”
Siemens expects the purchase to lead to savings amounting to a “mid-triple digit” million dollar amount.
