3D Systems snaps up 3D design firm Cimatron
3DS is acquiring 3D design company Cimatron in order to improve 3DS' position in the rapidly-growing 3D design and manufacturing industry.
The buyout, announced on Monday, is expected to strengthen 3DS' 3D printing and manufacturing portfolio.
Cimatron provides CAD and CAM software products and solutions for 3D manufacturing, which has exploded in popularity during the last few years. 3D printing can be used by companies not only to bring down manufacturing costs of components, but during prototype stages in order to more quickly and cheaply design effective products -- ranging from the vehicle industry to healthcare.
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The boards of both companies have unanimously approved the proposed buyout.
Under the terms of the deal, 3DS will acquire outstanding Cimatron shares for $8.97 per share in cash, subject to adjustments for transaction expenses. Inclusive of net cash, the deal is expected to be finalized for approximately $97 million.
3DS believes that the buyout will strengthen the company's portfolio with the additions of CAD and CAM software as well as the CimatronE and GibbsCAM manufacturing application product lines. 3DS will also gain access to Cimatron's client base, which spans across different manufacturing sectors worldwide. The firm says these networks will extend 3DS' direct and reseller sales coverage internationally.
"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," commented Avi Reichental, President and CEO of 3DS.
The acquisition is subject to regulatory approval, and is expected to close in the first quarter of 2015.
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