In news this morning, 3D Systems (DDD) announced they are acquiring Cimatron (CIMT), a leading provider of integrated 3D CAD/CAM software products and solutions for manufacturing.
Cimatron (web site) generated .48/share in earnings for the trailing twelve month period and analysts estimate were for an increase to .54/share in 2015.
The deal includes $20 million in cash held by Cimatron and is expected to add to profit and cash flow immediately after the close in the first quarter of 2015.
Avi Reichental, President and CEO of 3DS commented.
“We believe that the perfect strategic fit between our businesses, combined with expanded capabilities in product development, channel coverage and marketing, could present sizeable synergies that together offer significant long-term customer benefits and shareholder value.”
3D Systems (DDD) to Acquire Cimatron (CIMT)
Good Deal for 3D Systems
Based on initial information, this appears to be a very favorably priced acquisition by 3D Systems at $8.97/share given Cimatron’s strong cash flow and earnings history. Cimatron traded as high as $10.75 earlier this year.
This acquisition increases my confidence in why I bought shares of 3D Systems heavily two weeks ago.
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Disclosure: I am long shares of DDD. I was not paid by any company or third party for this article.
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