Siemens Continues Pivot to Software With SupplyFrame Purchase

Siemens AG will acquire supply-chain management firm SupplyFrame Inc. for $700 million, the latest move in the engineering giant’s pivot toward more profitable software businesses.

The German engineering giant said it agreed to acquire the Pasadena, California-based company that provides manufacturers with intelligence on factory outages, material-cost changes and supply-chain disruptions. SupplyFrame is expected to have revenue of around $70 million in its current financial year and has profit margins typical of the software industry, Siemens said.

“SupplyFrame’s ecosystem and marketplace intelligence complements our industrial software portfolio perfectly,” said Cedrik Neike, a member of Siemens’s management board.

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