Sandvik completes the acquisition of leading CAM software company CNC Software Inc., creators of Mastercam

Rhea-AI Summary

Sandvik has finalized its acquisition of CNC Software Inc., a top provider of CAD/CAM solutions, known for Mastercam, the industry's leading CAM brand. In 2020, CNC Software reported revenues of approximately USD 60 million with an EBIT margin of 25-30%, and about 60% of its revenue was recurring. This acquisition will enhance Sandvik's Design & Planning Automation division within its Manufacturing and Machining Solutions.

Positive

• Acquisition of CNC Software strengthens Sandvik's position in the CAD/CAM market.
• CNC Software's recurring revenue of approximately 60% enhances revenue stability.
• Addition of Mastercam brand could drive future growth in manufacturing technologies.

Negative

• None.

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SANDVIKEN, Sweden, Sept. 30, 2021 /PRNewswire/ -- Sandvik has completed the previously announced acquisition of US-based CNC Software Inc., a leading provider of CAD/CAM software solutions for manufacturing industries and the company behind Mastercam, the most widely used Computer Aided Manufacturing (CAM) brand in the industry.

In 2020, the company had revenues of approximately USD 60 million with an EBIT margin of 25-30 percent, and of which the share of recurring revenue was approximately 60 percent.

CNC Software will be reported in the Design & Planning Automation division within Sandvik Manufacturing and Machining Solutions.

Stockholm, September 30, 2021
Sandvik AB

For further information, contact Louise Tjeder, Vice President Investor Relations, phone: +46 70 782 6374 or Johannes Hellström, Press and Media Relations Manager, phone: +46 70 721 1008.

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Sandvik completes the acquisition of leading CAM software company CNC Software Inc., creators of Mastercam

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SOURCE Sandvik

FAQ

What is the significance of Sandvik's acquisition of CNC Software Inc. on September 30, 2021?

The acquisition enhances Sandvik's capabilities in CAD/CAM solutions, adding Mastercam to its portfolio, which could lead to growth in manufacturing technologies.

What were the financial metrics of CNC Software Inc. before Sandvik's acquisition?

CNC Software had revenues of approximately USD 60 million in 2020, with an EBIT margin of 25-30% and about 60% of revenues coming from recurring sources.

How does the acquisition affect Sandvik's Design & Planning Automation division?

CNC Software will be integrated into Sandvik's Design & Planning Automation division, potentially strengthening its offerings in the manufacturing sector.

What is Mastercam, and how is it related to this acquisition?

Mastercam is the most widely used CAM brand in the industry, and its acquisition by Sandvik positions the company to leverage this leading software for enhanced market competitiveness.