Siemens AG, the German conglomerate company, is acquiring low-code application development platform provider Mendix for $730 million in cash. Along with the cash, Siemens will invest in research and development, and global expansion of Mendix for the next few years.
Founded in 2005, Mendix focuses on accelerating and simplifying the development of enterprise-grade software applications. It provides cloud-native low-code development platform, allowing the people with no coding skills to develop software.
Whereas, Siemens is a pioneer in services targeting digitalization, automation and electrification. By acquiring Mendix, Siemens will boost its cloud, internet of things (IoT), and Digital Enterprise software capabilities.
“When we pioneered the low-code market over a decade ago, we had a bold vision to help customers change the way they build software, but we never imagined the oceanic opportunity that’s now in front of us,” said Derek Roos, co-founder and CEO of Mendix.
“I’m thrilled to accelerate our vision at a much larger scale with the incredible team, assets, industry know-how and footprint of Siemens behind us. Being part of Siemens will allow us to serve our customers even better by accelerating our R&D vision, adding a much larger pool of go-to-market resources, and leveraging an enormous global infrastructure.”
Siemens will integrate Mendix’s low-code segment into MindSphere platform to accelerate its adoption. The MindSphere is a cloud-based, open IoT operating system that provides advanced analytics from data generated by IoT devices.
With the acquisition, Mendix will now be a part of the software business of Siemens’ Digital Factory (DF) Division. Siemens will also deploy the Mendix platform across its other Divisions.
“As part of our digitalization strategy, Siemens continues to invest in software offerings for the Digital Enterprise. With the acquisition of Mendix, Siemens continues to add to its comprehensive Digital Enterprise and MindSphere IoT portfolio, with cloud domain expertise, cloud agnostic platform solutions and highly skilled people,” said Jan Mrosik, CEO of the Digital Factory Division.
The transaction is expected to close in first quarter of Siemens fiscal year 2019. Derek Roos will continue as the CEO of Mendix, joining the senior leadership team of Siemens PLM software.