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.
Share
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
-
How to Mitigate Chatter to Boost Machining Rates
There are usually better solutions to chatter than just reducing the feed rate. Through vibration analysis, the chatter problem can be solved, enabling much higher metal removal rates, better quality and longer tool life.
-
Can AI Replace Programmers? Writers Face a Similar Question
The answer is the same in both cases. Artificial intelligence performs sophisticated tasks, but falls short of delivering on the fullness of what the work entails.
-
Generating a Digital Twin in the CNC
New control technology captures critical data about a machining process and uses it to create a 3D graphical representation of the finished workpiece. This new type of digital twin helps relate machining results to machine performance, leading to better decisions on the shop floor.