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.
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.