In keeping with their strategy of aggressively adding companies to their portfolio, 3D Systems Corporation and Cimatron Ltd. have announced an agreement which will see 3D Systems acquire all outstanding shares of Cimatron for approximately $97 million.
Cimatron, developers and distributors of CAD/CAM software aimed at the manufacturing industry market, boasts two major product lines – GibbsCAM and CimatronE.
The products are tailored for the manufacturing sector and offer specialized solutions for mold and die makers, and the package can also offer solutions for 2.5-5-Axis production milling and turning processes.
Cimatron operates subsidiaries in Asia, North America and Europe, and works with certified independent service providers in over 40 countries worldwide. The company is located in Givat Shmuel, Israel, while the GibbsCAM branch is headquartered in Moorpark, California.
The strategy, that Cimatron's products will strengthen the 3D Systems position in the 3D design and manufacturing space, adds products and technology to extend sales coverage through direct and reseller channels around the world.
Avi Reichental, President and CEO of 3D Systems, says the deal is a strategic coup for both companies which will expand product development, channel coverage and marketing, and offer synergies over the long-term aimed at benefitting customers and shareholders.
"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 3D Systems we can substantially accelerate our progress and extend our reach and impact," says Cimatron CEO Danny Haran.
Haran joined Cimatron in November 2003 from Comverse where he was most recently Chief Operating Officer of the Intelligent Network Division. In the past, Haran managed Medcon Systems, an Israeli-based start-up company, and he holds a B.Sc. in Computer Engineering from the Technion Institute, an M.Sc. from the Weitzman Institute and an MBA from Tel Aviv University, Israel.
The deal is, of course, subject to standard closing conditions such as regulatory approvals and the approval of Cimatron's shareholders. As for the shareholder side, the Boards of Directors of both companies have unanimously approved the proposed transaction and barring hiccups, both companies say they expect the transaction to close during first quarter of 2015.
"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," says Yossi Ben Shalom, Chairman of the Board of Cimatron.