CimatronE series.
3D Systems has agreed to sell Cimatron Ltd and its related subsidiaries to an investment firm for $65 million.
Battery Ventures has acquired the Cimatron Group, which operates the Cimatron CAD/CAM software and GibbsCAM CNC programming software businesses, to support a CAD/CAM software provider serving professional fabricators called SigmaTEK Systems. 3D Systems has agreed to the sale, which is expected to go through before the end of the year, to focus on its ‘strategic purpose as the leaders in enabling additive manufacturing solutions for applications in growing markets that demand high-reliability products.
The deal has been struck in what has been a difficult financial year for 3D Systems, with revenue down to $112.1 million in Q2 2020 compared to $157.3 million in Q2 2019 and down to $134.7 million in Q1 2020 compared to $152.0 million in Q1 2019. Per CONTEXT, it comes as 3D printer investments in the design and industrial classes are down on last year, due to near-term expenditure cutbacks during the pandemic.
3D Systems acquired the Cimatron business back in 2015 for approximately $97m as it looked to grow its status as an advanced manufacturing leader, expanding its portfolio and global sales coverage. Five years later, it has decided to sell the division and place greater focus on the additive manufacturing market.
“Over the last several months, we’ve made significant progress in aligning our business to our core strengths to achieve growth,” commented 3D Systems CEO and President Jeffrey Graves. “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.”
The company says given the anticipated completion of the deal and the recipt of proceeds from the sale, 3D Systems does not expect to issue shares of its common stock under its previously announced at-the-market equity offering programme during the fourth quarter of 2020. It also plans to evaluate the continued need for the at-the-market equity offering programme and may ultimately elect to terminate such programme, following the completion of the Cimatron and GibbsCAM sale.
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