Despite their recent disappointments, at least within the stock market, 3D Systems (NYSE:DDD) continues to aggressively put capital to use by way of acquisition. Easily the most active company in the US, and perhaps the world, when it comes to acquiring other 3D printing related firms, Avi Reichental and 3D Systems look to take a dominant position within the market, despite HP’s recent entrance into the space.
The approach they seem to be taking is one which looks to expand their scale and scope as rapidly as possibly to capitalize on the near-exponential growth within the industry. Today, they continued their acquisition spree with the announcement of a definitive agreement between themselves and Cimatron Ltd. (NASDAQ: CIMT) to acquire all outstanding shares of the company for $8.97 in cash per share. This represents a 47.5% premium over Friday’s closing price of the stock. The deal is worth approximately $97 million, which includes net cash on Cimatron’s balance sheet.
This acquisition will provide 3D Systems with assets which will expand their company’s scope. Cimatron is one of the leaders within the 3D CAD/CAM software space. Their two main product lines include GibbsCAM and CimatronE, both modeling software packages which cater to a vast array of manufacturing applications. This software can be used with 3D printers, as well as CNC machines, providing 3D Systems with expanded coverage within the manufacturing sector.
“We believe that the perfect strategic fit between our businesses, combined with expanded capabilities in product development, channel coverage and marketing, could present sizable synergies that together offer significant long-term customer benefits and shareholder value,” commented Avi Reichental, President and CEO of 3DS.
Being able to provide quality, trusted software in addition to hardware, in one package, could provide 3D Systems with a platform to take advantage of substantial economies of scope. In addition to strengthening their supply chain dynamics, they should also be able to integrate a large part of Cimatron’s business into various departments within their own.
“Our entire Board of Directors is proud of Cimatron and its management’s long term success in building a great company with leading products that create sustained customer and shareholder value, and are grateful to have been part of guiding this journey,” stated Yossi Ben Shalom, Chairman of the Board of Cimatron.
The deal is expected to close sometime during the first quarter of 2015. Let’s hear your thought on 3D Systems’ continued string of acquisitions within the industry. Discuss in the Cimatron / 3D Systems Forum thread on 3DPB.com.
You May Also Like
Accelerate to AM Success with Simulation
The benefits of an additive manufacturing (AM) program are highly compelling –for the creation of highly complex parts, economically manufacturing lot sizes of one, and the near elimination of wasted...
2022 Predictions: 3D Printing for Series Production of Metal Parts
It’s time to gaze into the tea leaves and imagine a bright future for 3D printing. In this article, we will be looking specifically at predictions, trends, and developments in...
BMW Leads Seed Round for Rubber 3D Printing Startup Rapid Liquid Print
Boston 3D printing company Rapid Liquid Print (RLP) is working to make a new class of 3D printers that can effortlessly build large-scale, high-resolution, soft, and stretchable products using industry-grade...
3D Printing Webinar and Event Roundup: December 5, 2021
We’ve got another busy week of webinars and events to tell you about, with topics ranging from aviation and medical 3D printing to a town hall meeting, biomaterials, SLA technology,...
View our broad assortment of in house and third party products.