The acquisition price was at a 47.5% premium on yesterday’s market price.
The share price of Israeli company Cimatron Ltd. (Nasdaq: CIMT) skyrocketed 43%, after the company reported that it had been sold to 3D Systems for $97 million. 3D Systems acquired the Givat Shmuel based CAD/Cam company for $8.97 a share, a 47.5% premium on yesterday’ closing price. The sale price is lower than the peak price posted by the Cimatron share earlier this year.
Managed by CEO and president Danny Haran, Cimatron develops product design software, and 3D Systems makes 3D printers and provides related products and services. 3D Systems is traded at a $3.9 billion market cap on the New York Stock Exchange. According to the companies’ announcement, integration of Cimatron’s products in 3D Systems’ portfolio “will bolster the latter’s standing in the rapidly growing design segment.”
3D Systems is managed by president and CEO Avi Reichental, a former Israeli. Several months ago, he acquired Israeli company Simbionix, which developed simulation systems for training doctors and computerized treatment planning, for $120 million. Founded in 1982, until two years ago Cimatron’s major shareholders included Yossi Ben-Shalom and Barak Dotan’s DBSI investment company.
DBSI sold its 46% stake in Cimatron at a profit for over $30 million, in the framework of the latter’s secondary Nasdaq offering, 11 years after acquiring the shares for a mere $4.5 million. The current sale price for the company is higher, with the main beneficiary being US investment institution Wellington, which owns 14.6% of Cimatron through two of its funds.
Haran said, “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 3DS we can substantially accelerate our progress and extend our reach and impact.”
Published by Globes [online], Israel business news – www.globes-online.com