The acquisition will turn Cimatron into one of the top ten CAM software vendors.
CAD/CAM developer Cimatron Technologies (Nasdaq: CIMT) has acquired Gibbs System Inc. for $5 million in cash and 1.5 million Cimatron shares, paid to Gibbs System's sole owner, chairman, and CEO William Gibbs. Gibbs will continue to manage the new Cimatron subsidiary as president and CEO and will become vice chairman of Cimatron.
Gibbs System (also known as Gibbs & Associates) has developed CAM software for programming CNC machine tools. Cimatron said that the merged company would cover markets in North America, Europe and the Asia Pacific region. It added that the merged company would have $40 million in annual revenue.
Cimatron said that it will have 9.4 million shares when the deal is closed, which will give William Gibbs a 16% stake in the company.
Cimatron closed at $3.05 after rising 1.6% on Friday, giving a market cap of $24 million.
Published by Globes [online], Israel business news - www.globes-online.com - on January 6, 2008
© Copyright of Globes Publisher Itonut (1983) Ltd. 2008