Gibbs to Be Merged into Cimatron
Cimatron Ltd., a leading provider of integrated CAD/CAM solutions for the toolmaking and manufacturing industries, and Gibbs and Associates, which develops GibbsCAM® software for programming cnc machine tools, have executed a definitive agreement under which Gibbs will be merged into a newly established US subsidiary of Cimatron.
Bringing together the CimatronE integrated CAD/CAM suite for toolmaking and the GibbsCAM CAD/CAM solution for production will strengthen Cimatron’s position as a leading international CAD/CAM software company by broadening the company’s product range. The combined product offering will strengthen Cimatron’s market position, giving the company the ability to deliver best-of-class products targeting all segments of the CAM market, including mould and die making, 2.5- to 5-axis production, and mill-turn and multitask machining.
The merger is expected ultimately to magnify the merged company’s global presence as a result of its being able to offer a more powerful product portfolio for the entire manufacturing industry. The combined company’s annual revenues are expected to exceed $40 million, moving Cimatron well into the top 10 of CAM software vendors.
The combined distribution networks of Cimatron and Gibbs complement each other and thus cover all target markets worldwide, particularly in North America, Europe, and the Asia Pacific region. Synergies should quickly be realized when the combined product portfolio begins to be sold through the merged distribution channels.
Cimatron is paying William F. (Bill) Gibbs, the chairman and sole shareholder of company he founded, a cash consideration of $5 million along with 1.5 million newly issued ordinary shares of Cimatron stock. Cimatron’s outstanding share capital after the closing will comprise approximately 9.4 million ordinary shares.
Following the closing, Bill Gibbs will continue to manage the GibbsCAM product-line business as president and CEO of the new subsidiary, and will join the Cimatron senior management team. In addition, he will be nominated to serve as vice chairman of the board of directors of Cimatron.
Danny Haran, president and CEO of Cimatron, is excited about the merger and the potential synergy. “We believe that the reinforced Cimatron will enjoy economies of scale, which would translate the high-quality engineering, financial efficiency, and stronger competitive position into revenue and profit growth,” he says.
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