Cimatron Limited (www.cimatron.com) extended its position as a supplier of integrated computer-aided design and computer-aided manufacturing software with the purchase of Gibbs System, Inc (www.gibbscam.com).
The purchase is expected to put Cimatron’s annual sales at $40 million, solidifying its posistion as one of the top five providers of CAD/CAM software in the world.
Gibbs, which also is known as Gibbs Associates, developed GibbsCAM software for programming CNC machine tools. It is being merged into a newly formed U.S. subsidiary of Cimatron.
After the closing, William F. Gibbs, founder, chairman and chief executive officer of Gibbs System, and its sole shareholder, will continue to manage the GibbsCAM product-line business as president and chief executive officer of the new Cimatron subsidiary, and will join the Cimatron senior management team. In addition, Gibbs will be nominated to serve as vice chairman of the board of directors of Cimatron.
Gibbs was paid $5 million in cash, and received 1.5 million newly issued ordinary shares of Cimatron in the sale.
In a statement on the purchase, Cimatron said merging the Cimatron E integrated CAD/CAM suite for toolmaking and the GibbsCAM CAD/CAM software for production will allow it to offer a wider product portfolio that will address all aspects of manufacturing.
The company said the combined product offering will strengthen Cimatron's market position in all segments of the CAM market, from mold and die making, through 2.5 axes and 5 axes production to mill-turn and multi-tasking machining.
Additionally, the company said the combined distribution networks of Cimatron and Gibbs complement each other and provide coverage of all of its target markets worldwide.
The company’s statement said it expects that it will quickly realized synergies from the merged products by selling them its merged distribution channels.
Cimatron said Gibbs System's estimated revenues in 2007 were approximately $12 million and its estimated pre-tax profit was more than 10 percent of revenues.