Now they’re all about the additive company.
3D Systems is paring down some more and getting back to its core business, additive manufacture. The company has been restructuring and refocusing after its acquisitive years between 2003 and 2005. The company acquired Cimatron Ltd. for $97 million, towards the end of its buying spree. It is selling the company to San Francisco investment firm Battery Ventures for $65 million.
The deal includes Cimatron integrated CAD/CAM software, GibbsCAM CNC programming. Battery already has complementary technology as a result of a 2018 acquisition when Battery Ventures acquired SigmaTEK, a CAD/CAM supplier developing complementary technology including SigmaNEST, nesting technology.
3D Systems CEO Dr. Jeffrey Graves says his company will focus on additive manufacturing.
What do we think?
There has been considerable interest in combining additive and subtractive manufacture to broaden the range of parts that could be made and there are several companies and organizations pursuing hybrid manufacturing methodologies. The idea is that the precise nature of CAM procedures can come into play to refine the output of 3D printers. Siemens has worked with DMG Mori to create a hybrid system that its NX program could model and there’s growing work in this field. However, it tends to be for high-end machines and 3D Systems in those days was all about the democratization of additive manufacture.
The 3D Systems press release follows:
ROCK HILL, South Carolina, November 3, 2020 – 3D Systems (NYSE:DDD) today announced it has signed an agreement to sell Cimatron Ltd. and its related subsidiaries, which operate the Cimatron integrated CAD/CAM software and GibbsCAM CNC programming software businesses, to Battery Ventures, a global, technology-focused investment firm for a purchase price of $65 million, subject to certain closing adjustments. Cimatron and GibbsCAM will join a Battery-backed manufacturing portfolio that includes SigmaTEK Systems, a CAD/CAM software provider for the metal fabrication industry. This action is part of the company’s announced reorganization and restructuring plan, designed to focus the company on its strategic purpose as the leaders in enabling additive manufacturing solutions for applications in growing markets that demand high-reliability products.
“Over the last several months, we’ve made significant progress in aligning our business to our core strengths to achieve growth,” said Dr. Jeffrey Graves, president and chief executive officer, 3D Systems. “With this announcement, we continue to demonstrate our commitment to focus on additive manufacturing, creating value through solutions designed to address our customers’ unique application needs.”
Completion of the transaction is expected to occur during the fourth quarter of 2020.
Given the anticipated completion of the sale of the Cimatron and GibbsCAM businesses and the receipt of the proceeds from the sale, 3D Systems does not expect to issue shares of its common stock under its previously announced at-the-market equity offering program during the fourth quarter of 2020. Following the completion of the sale of the Cimatron and GibbsCAM businesses, the company plans to evaluate the continued need for the at-the-market equity offering program and may ultimately elect to terminate such program.