3D Systems
3D Systems HQ
3D Systems has taken another significant step in its plan to focus solely on additive manufacturing with the sale of its Simbionix medical simulation business.
An agreement has been signed with Surgical Science Sweden AB, a supplier of virtual reality simulators for medical training, for a purchase price of 305 million USD, subject to customary closing conditions and adjustments.
The divesture follows the sale of the 3D printing pioneer’s On Demand Manufacturing and Cimatron CAD/CAM businesses as part of an ongoing strategy led by CEO Dr Jeffrey Graves. This latest transaction is said to complete the company’s divestment initiative as it prioritises “growth and margin expansion as a leader in additive manufacturing.”
In a press release issued by 3D Systems, Graves commented on the “brighter” future he foresees for the Simbionix team and portfolio of medical simulation products under the Surgical Science brand and how the transaction complements 3D Systems’ growth plans.
“The proceeds from this sale, combined with previously announced divestitures, will leave us in a strong position, with a cash balance of approximately $500 million and no debt,” said Graves. “Having reorganised the company into two business units - Healthcare and Industrial Solutions - and restructured to drive operational efficiencies over the last year, we now move forward expecting strong organic growth and profitability, at both a gross margin and EBITDA margin level, and positive operating cash flow capable of sustaining the investments needed to meet increasing customer demand for additive technology. With our scale, our industry-leading breadth of technology, which spans polymer and metal solutions, and an applications focus that is proving successful in accelerating customer adoption of additive manufacturing, we are very well positioned to remain a leader in the additive manufacturing industry.”
While 3D Systems has been making some big divestures over the last year, it has also been busy investing in companies which align with its AM-centred strategy. Earlier this year the company purchased Allevi and Additive Works in a bid to expand its bioprinting and software capabilities. To support this, the company has also announced plans to expand its facilities in Rock Hill, South Carolina and Littleton, and underwent a leadership shuffle which saw 3D Systems’ co-founder, Chuck Hull, take charge of the company’s regenerative medicine efforts as Chief Technology Officer for Regenerative Medicine, and former EOS CTO Dr David Leigh coming on board as CTO for Additive Manufacturing.
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