Sandvik to Acquire CNC Software Inc.
By acquiring the company behind Mastercam, 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 (Stockholm, Sweden) has signed an agreement to acquire CNC Software Inc. (Tolland, Connecticut), a 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, said to be 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%, and of which the share of recurring revenue was approximately 60%. CNC Software has had a historical annual growth rate of approximately 10% and is expected to outperform the estimated market growth of 7%.
The parties have agreed not to disclose the purchase price. The deal is expected to close during Q4 2021.
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