German industrial giant Siemens on Monday announced the $700 million (575 million euros) acquisition of U.S. firm Supplyframe, a digital platform that specializes in connecting companies along the electronics supply chain.
The deal, expected to close later this year, comes 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.
Copyright 2021, Agence France-Presse
