3D Systems Corporation (DDD) declared the buyout completion of Cimatron ltd. (CIMT) – one of the leading CAD/CAM software solutions providers – for $97 million. The move will generate strong operational and financial synergies for 3D Systems, as the addition of Cimatron to its product portfolio will significantly enhance its product and technological development.
In particular, the inclusion of Cimatron will enable 3D Systems to enhance its 3D digital fabrication offerings besides increasing its sales exposure. Notably, 3D Systems expects this acquisition to be immediately accretive to its cash flow and non-GAAP earnings for this year.
Cimatron specializes in offering comprehensive yet cost-effective solutions for 3D CAD/CAM software products including molds, tools and dies for use in the manufacturing sector. The company has two primary product lines, CimatronE and GibbsCAM.
CimatronE primarily caters to toolmakers and discrete part manufacturers by providing the required CAD/CAM solutions. GibbsCAM has expertise in providing efficient and simple solutions for programming multi-axis CNC machine tools in the CAM industry.
We believe the above-mentioned acquisition of Cimatron will further equip the company to solidify its place in the rapidly growing 3D industry amid stiff competition from peers like Stratasys Ltd. (SSYS).
As a matter of fact, 3D Systems remains persistently focused on driving growth via acquisitions and significant deals. Last month, the company announced the acquisition of botObjects, a U.K.-based 3D printer startup. Also, in Dec 2014, 3D Systems partnered with The Culinary Institute of America for developing the 3D printing technologies for food and culinary industries.
3D Systems is slated to release its fourth quarter and full year 2014 results on Feb 26. The Zacks Consensus Estimate for the same is currently pegged at 20 cents, representing a year-over-year growth of 27.1%.
Presently, 3D Systems carries a Zacks Rank #4 (Sell). A better-ranked stock in the industry is Apple Inc. (AAPL), which sports a Zacks Rank #2 (Buy).
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