Sandvik to Acquire the Creators of Mastercam
By acquiring CNC Software, Sandvik gains an installed base of around 270,000 licensed users, a strong market reseller network and partnerships with leading machine makers and tooling companies.
Sandvik has signed an agreement to acquire CNC Software Inc., a leading provider of CAD/CAM software solutions and the company behind Mastercam. By acquiring CNC Software, Sandvik gains an installed base of around 270,000 licensed users, the largest in the industry, as well as a strong market reseller network and well-established partnerships with leading machine makers and tooling companies.
According to Sandvik, CNC Software has a strong market position in CAM – particularly for small- and medium-sized manufacturing enterprises (SME’s) – which will enable Sandvik to develop automation solutions across the industry, as well as deliver solutions for large OEMs. Sandvik expects its partnership with Mastercam to be an important enabler in automating the customers’ end-to-end manufacturing processes.
“This is in line with our strategic focus to grow in the digital manufacturing space, with special attention on industrial software close to component manufacturing. CAM plays a vital role in the digital manufacturing process, enabling new and innovative solutions in automated design for manufacturing,” says Stefan Widing, president and CEO of Sandvik.
CNC Software’s revenue for 2020 totaled $60 million with an EBIT margin of 25-30 percent, and of which the share of recurring revenue was approximately 60 percent. CNC Software has had a historical annual growth rate of approximately 10 percent and is expected to outperform the estimated market growth of 7 percent.
The parties have agreed not to disclose the purchase price. The deal is expected to close during Q4 2021.
Related Content
-
Improve Machining Efficiency Through Digital Twin Simulation
Full simulation of a machining cycle using digital twins can not only identify crashes before they happen, but provide insights that enable the user to reduce cycle times.
-
How this Job Shop Grew Capacity Without Expanding Footprint
This shop relies on digital solutions to grow their manufacturing business. With this approach, W.A. Pfeiffer has achieved seamless end-to-end connectivity, shorter lead times and increased throughput.
-
Building A Powerful Bridge from the CAM Programmer to the Shop Floor Operator
SolidCAM for Operators provides a powerful bridge from CAM programming to the shop floor to best streamline the machine shop process with its CAM part simulation. It provides a clear picture to the operator for setup and prove-out, enables minor G-Code changes and avoids crashes, broken tools and scrapped parts.