3D Systems is selling its Geomagic software portfolio to Hexagon for 123 million USD following a strategic review of its software investment strategy.
Geomagic's offering covered reverse engineering, design, and inspection, and is expected to be integrated into the Hexagon business in the first half of 2025 subject to customary regulatory reviews. 3D Systems acquired the business back in 2013.
The Geomagic product portfolio includes Design X, Control X, Freeform, Wrap, and Geomagic for SolidWorks, and has made its name by creating digital models from physical objects that can then be used to manufacture finished components. This reverse engineering capability is supplemented by Geomagic's ability to design from scratch, modify existing models, and accurately measure and inspect parts for quality control purposes.
Hexagon will pay the 123m USD purchase price on a cash and debt free basis. In 2023, the acquired software business is said to have had around 100 employees, generated revenues of around 30m USD and delivered operating margins accretive to those of the Manufacturing Intelligence division.
Norbert Hanke, interim President and CEO of Hexagon, said: “The combination of Geomagic and our existing solutions will further strengthen our market leadership in 3D metrology and reengineering, demonstrating our commitment to deliver increasingly user friendly tools capable of executing complex tasks, so our customers can bring innovative, high quality products to the market at speed and with confidence. We look forward to welcoming the Geomagic team to Hexagon.”
In light of the sale, 3D Systems says it will 'sharpen its focus' on software solutions that 'accelerate adoption of 3D printing technologies in large-scale, production application environments.' To this end, the company is set to expand the capabilities of its 3D Sprint and 3DXpert software platforms, leveraging AI and machine learning to deliver improved workflows, higher productive, reduced costs, and improved component quality. 3D Systems has said that its Oqton Industrial Manufacturing OS will focus on 'critical industrial applications' and will continue to work with Baker Hughes to develop a digital ecosystem for highly-regulated industries like energy and healthcare.
“The additive manufacturing industry is rapidly evolving, and we believe there are significant opportunities to drive innovation that is critical to the wide-spread adoption of 3D printing in production environments,” said Dr. Jeffrey Graves, president & CEO, 3D Systems. “While advanced printing hardware and engineering materials are essential to the new applications that are of most interest to our customers, software is equally important to the mass adoption of the technology. As the company that commercialised the first 3D printing technology nearly four decades ago and has the most extensive experience in mass production of custom components, 3D Systems is well-positioned to be a leader in moving AM from the lab to the factory floor. The changes we’re announcing today will sharpen our focus on those software platforms that are most critical to our customers’ success in this new-use environment. By streamlining our software operations, focusing exclusively on our core platforms, and leveraging the exceptional capabilities that AI is now making available to us, we will be better positioned to support our customers' most critical requirements as they move 3D printing into high-volume production environments.
“For those thousands of loyal Geomagic customers who have been essential to our growth, we believe that Hexagon is an ideal strategic owner for these assets and that the future will be bright under their stewardship. For 3D Systems’ stakeholders, this transaction leaves the Company very well-positioned for the future, with the broadest technology base in the industry, the scale needed to support our customers in production environments, and a fortified balance sheet to continue driving our industry leading innovation.”
The sale of Geomagic is the latest business unit to be sold by 3D Systems in recent years, with its On Demand Manufacturing business being divested in June 2021 and Simbionix being carved out in July 2021.
