Hexagon's Strategic Acquisition of 3D Systems' Software
Hexagon recently announced an exciting move in the world of technology by acquiring the Geomagic suite from 3D Systems. This software suite is renowned for its capability to create high-quality 3D models through various methods, including advanced laser scanning technology.
Understanding the Geomagic Suite
The Geomagic suite comprises powerful products such as Design X, Control X, Freeform, and Wrap. These tools play a critical role in automating the processing of 3D scan data, enabling the transformation of physical objects into digital models. Such digital models pave the way for generating history-based parametric CAD models, essential for modern product manufacturing approaches.
Automating Processes for Enhanced Efficiency
With the Geomagic software, users can engage in initial free-form design, modify existing CAD models, and conduct precise measurements and inspections of parts to ensure quality control. This means that manufacturers using Hexagon’s software can achieve high standards efficiently.
Strengthening Hexagon’s Manufacturing Intelligence
The acquisition of the Geomagic capabilities significantly boosts Hexagon’s existing software offerings in the Manufacturing Intelligence sector. They are already recognized for their leadership in portable metrology sensors, and this merger enhances their ability to deliver comprehensive solutions tailored for various manufacturing applications.
Leadership Insights
Norbert Hanke, the interim President and CEO of Hexagon, expressed enthusiasm about this acquisition. He noted, "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. This allows our clients to bring innovative, high-quality products to the market more quickly and with confidence. We eagerly welcome the Geomagic team to Hexagon."
Transaction Details and Future Outlook
Hexagon has committed to a purchase price of $123 million for the Geomagic software business, managing this transaction on a cash and debt-free basis. As of the last financial year, this acquired software unit had approximately 100 employees and generated revenues nearing $30 million. The operational margins from this unit are anticipated to be accretive to Hexagon’s Manufacturing Intelligence division.
Regulatory Considerations Before Completion
While Hexagon is excited about this new addition to its portfolio, the completion of the acquisition is contingent upon regulatory approvals and other customary conditions. These steps are expected to finalize by early in the second quarter of the next fiscal year.
Contact for More Information
For detailed inquiries regarding this acquisition, interested parties can reach out to Tom Hull, the Head of Investor Relations at Hexagon AB, via phone at +44 7442 678 437. Alternatively, Anton Heikenström, the Investor Relations Manager, can be contacted at +46 8 601 26 26.
Frequently Asked Questions
What is the significance of the acquisition for Hexagon?
The acquisition enhances Hexagon's software offerings, especially in 3D modeling and manufacturing processes, ultimately strengthening their market position.
What products are included in the Geomagic suite?
The Geomagic suite includes Design X, Control X, Freeform, and Wrap, which are instrumental in creating and modifying 3D models.
What is the estimated revenue generated by the acquired software business?
In the previous financial year, the Geomagic software business generated revenues of approximately $30 million.
Who leads Hexagon’s Investor Relations?
Tom Hull leads the Investor Relations team at Hexagon, with assistance from Anton Heikenström in managing investor communications.
When is the transaction expected to be finalized?
The acquisition is expected to be completed by early in the second quarter of the next fiscal year, pending regulatory approvals.
