Mastercam will be independent no more
CNC Software and its Mastercam have been a mainstay among CAM providers for decades, marketing its solutions as independent, focused on the workgroup and individual. That is about to change: Sandvik, which bought CGTech late last year, has announced that it will acquire CNC Software to build out its CAM offerings.
According to Sandvik’s announcement, CNC Software brings a “world-class CAM brand in the Mastercam software suite with an installed base of around 270,000 licenses/users, the largest in the industry, as well as a strong market reseller network and well-established partnerships with leading machine makers and tooling companies”.
We were taken by surprise by the CGTech deal — but shouldn’t be by the Mastercam acquisition. Stefan Widing, Sandvik’s CEO explains it this way: “[Acquiring Mastercam] is in line with our strategic focus to grow in the digital manufacturing space, with special attention on industrial software close to component manufacturing. The acquisition of CNC Software and the Mastercam portfolio, in combination with our existing offerings and extensive manufacturing capabilities, will make Sandvik a leader in the overall CAM market, measured in installed base. CAM plays a vital role in the digital manufacturing process, enabling new and innovative solutions in automated design for manufacturing.” The announcement goes on to say, “CNC Software has a strong market position in CAM, and particularly for small and medium-sized manufacturing enterprises (SME’s), something that will support Sandvik’s strategic ambitions to develop solutions to automate the manufacturing value chain for SME’s – and deliver competitive point solutions for large original equipment manufacturers (OEM’s).”
Sandvik says that CNC Software has 220 employees, with revenue of $60 million in 2020, and a “historical annual growth rate of approximately 10 percent and is expected to outperform the estimated market growth of 7 percent”.
No purchase price was disclosed, but the deal is expected to close during the fourth quarter.
Sandvik is holding a call about this on Friday — more updates then, if warranted.