Sandvik has signed an agreement to acquire US based CGTech, a leader in software for CNC simulation, verification and optimisation.
This includes its popular Vericut software, a machining simulation and optimisation software that is CAM, machine tool manufacturer and cutting tool neutral.
CGTech will become part of Sandvik Coromant, a division within Sandvik Machining Solutions
Comments from Sandvik president and CEO Stefan Widing suggests this will not be the last acquisition Sandvik makes in the digital sphere, as it looks to strengthen its machining intelligence, software offerings and greater presence in key areas of the ‘customer value chain’.
“This is in line with our strategic focus to grow organically and through acquisitions in the digital manufacturing space, with special focus on software solutions close to machining,” said Widing.
Nadine Crauwels, president of Sandvik Machining Solutions, added: “It’s exciting to say that we are able to expand our capabilities with CGTech.
“This will not only strengthen our leading market position in all parts of the world but will as well enable us to take a big step forward in offering full machining solutions to our customers, which will reduce waste significantly in their broader value chain.”
Sandvik has been keen to show off its new approach to manufacturing in recent years, with its ‘full-circle of digital tools’, covering areas like design and planning, preparation, machining and verification in 2019, and its more recent investments and partnerships in metals additive manufacturing.
CGTech is headquartered in California, USA, and has 180 employees. In 2019, CGTech had revenues of about SEK 470 million.
The transaction is expected to close during the last quarter of 2020 and is subject to customary regulatory approvals.