Quickie: SigmaTEK acquired by Battery Ventures
Super quick because I’m knee-deep in earnings news: Battery Ventures announced yesterday that it has acquired SigmaTEK Systems, makers of the SigmaNEST nesting solution. Nesting is the process of taking the flattened versions of 3D parts like sheetmetal enclosures or ship hull plates and then laying them out in 2D so that they can be cut from larger sheets of metal, wood or composites. Algorithms like SigmaNEST’s optimize how the shapes fit on the sheet to create the best spacing for the tools being used, consider material deformation and other factors — it’s not sexy but it is sophisticated math.The point of automating this is to maximize material yield (or minimize waste, same thing), ensure product quality and optimize machine use. SigmaTEK also makes adjacent solutions for materials and equipment management.
You’ve heard of Battery Ventures before in our market: they were backers of Stratasys, the 3D printer maker that is now publicly traded. They seem to invest in companies that have some sort of technological edge but have gaps in their product sets or go-to-market efforts that could benefit from Battery’s deep pockets and technological expertise. As is the case with Stratasys, they try to ramp up growth, and introduce the technology into new markets.
Battery says that SigmaTEK has a new CEO, Robbie Payne, who comes to SigmaTEK from an education-tech company. He will lead the company as it continues to build out its sheetmetal capabilities via internal efforts but also, in concert with Battery, looks to acquisitions to “extend its industry reach and expand the company’s global footprint”.
Mr. Payne said in the Battery statement, “I am extremely excited to join SigmaTEK and to partner with Battery, a firm with extensive experience in software businesses globally as well as specific experience in the CAD/CAM sector. SigmaTEK is a highly regarded player in this market, and I look forward to leveraging the company’s excellent products and people to continue to grow the business.” SigmaTECH founder Ben TerreBlanche appears to be staying on in an advisory capacity.
Battery’s Morad Elhafed said, “We have been following SigmaTEK for several years and have always been impressed with the strength of the company’s business and brand. This investment is a further validation of the company’s strength in its market and the success that founder Ben TerreBlanche has had in scaling the company to date.”
The terms of the transaction were not disclosed.