Despite a reduction in its 2014 financial outlook, 3D Systems continues to spend its dough on acquisitions, this time, purchasing Israeli CAD/CAM company, Cimatron, reasoning that the company will immediately generate cash for the company in terms of Non-GAAP earnings per share, once the deal closes. Today, 3DS announced that it will purchase all of Cimatron’s outstanding shares for $8.97 per share in cash for a total of about $97 million.
Cimatron is a major developer of 3D CAD/CAM software tools used to create 3D production molds, tools, and dies for end-use manufacturing. With Cimatron’s CimatronE product line, toolmakers and manufacturers can design discrete parts and manage production all the way from quoting to design and delivery. The company’s other major product line, GibbsCAM®, is suited for programming multi-axis CNC machine tools.
Combined, the company’s products complement 3D Systems’ portfolio both in terms of software development and as a rapid prototyping and production provider. On the one hand, Cimatron adds a sharper manufacturing edge to 3DS’ Geomagic software products, which range from consumer to industrial 3D product design. On the other hand, the software company allows 3D Systems to better service customers that order parts through their Quickparts rapid prototyping and production wing. The deal, then, goes a long way to filling in the small gaps of 3D Systems’ “digital thread”, in which ideas designed in the virtual world can be made seamlessly into physical objects.
3D Systems President and CEO, Avi Reichental, said of the deal, “We believe that the perfect strategic fit between our businesses, combined with expanded capabilities in product development, channel coverage and marketing, could present sizeable synergies that together offer significant long-term customer benefits and shareholder value.”
Danny Haran, CEO of Cimatron, added, “We are delighted to combine our leading 3D CAD/CAM software products with 3DS’ expanding design and manufacturing digital thread. We have always been focused on providing comprehensive, cost-effective solutions that streamline manufacturing cycles and shorten product delivery time, and as part of 3DS we can substantially accelerate our progress and extend our reach and impact.”
Once the Board of Directors at both both companies agree to the transaction and the deal meets regulatory approval, the transaction should close during the first quarter of 2015. In anticipation of the New Years present, Cimatron stock (FRA:CR3) has jumped a huge 48.84%, at the time of this writing.
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