This spring, the Board of Directors at 3D Systems (NYSE: DDD) announced that CEO veteran and global manufacturing leader Dr. Jeffrey Graves had been named the new President and CEO of the company, replacing Vyomesh Joshi (VJ), the former HP executive appointed in 2016 to run 3D Systems. Graves presented a strategic reorganization and directional change for the company, restructuring 3D Systems in what he called a “more cohesive fashion.”
The AM industry stalwart has changed CEOs and performed major reorganizations twice in the last four years. This has led some to wonder if the company was heading in the wrong direction. COVID-19 hasn’t helped, as 3D Systems announced falling revenues and a significant layoff of about 20% of its workforce this summer, though Graves said that the latter was needed anyway.
“Many companies go through this when you’ve acquired a lot of businesses—and 3D Systems had acquired over 50 companies—when you’ve done that, you’ve undoubtedly got inefficiencies built into the structure,” Graves told 3DPrint.com last month. “I would say that, by the time normalcy returns, we will be leaner and more focused and really ready to drive for top- and bottom-line growth.”
3D Systems CEO Jeff Graves.
This week, 3D Systems is reinforcing its focus as one of the top AM solutions providers in the industry by announcing the sale of its business Cimatron Ltd., and all its related subsidiaries, to global investment firm Battery Ventures. Cimatron is an Israeli software company which operates the Cimatron integrated CAD/CAM software for manufacturing, toolmaking, and CNC programming applications, and the GibbsCAM CNC programming software businesses. But Cimatron and GibbsCAM will now be joining Battery’s manufacturing portfolio, which also includes SigmaTEK Systems, a CAD/CAM software provider for the metal fabrication industry.
“Over the last several months, we’ve made significant progress in aligning our business to our core strengths to achieve growth. 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,” Graves said in a press release.
Founded in 1983, Battery Ventures runs offices all over the United States, as well as in London and Israel, and backs companies in multiple high-tech markets at all stages, from seed and early to growth and buyout. 3D Systems signed an agreement with Battery Ventures to sell its Cimatron and GibbsCAM businesses for the price of $65 million, which is subject to certain closing adjustments. The transaction is expected to be completed during the fourth quarter of 2020. According to the release, 3D Systems is not expecting to issue any shares of common stock “under its previously announced at-the-market equity offering program” during Q4 2020.
This sale is part of the restructuring and reorganization plan that Graves announced, which is meant to help 3D Systems refocus as a leader in developing AM solutions for a wide variety of applications in expanding markets that require reliable products. Once the sale of its Cimatron and GibbsCAM businesses has been completed, 3D Systems will continue with its plan, next evaluating if it even needs an at-the-market equity offering program. Should the company decide this is not necessary, it may even terminate the program in the future.
(Source: 3D Systems)