Sandvik has signed an agreement to acquire US-based CNC Software Inc, a provider of CAD/CAM software solutions for manufacturing industries including Mastercam, one of the most widely used CAM brands.
By acquiring CNC Software, Sandvik gains a powerful brand name in Mastercam, which boasts an install base of around 270,000 licenses/users, which it claims is the largest in the industry, as well as an established reseller network and partnerships with machine makers and tooling companies.
CNC Software will join the growing Design & Planning Automation division within Sandvik Manufacturing and Machining Solutions.
“This is in line with our strategic focus to grow in the digital manufacturing space, with special attention on industrial software close to component manufacturing,” said Sandvik CEO Stefan Widing.
“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.”
Sandvik suggests that it is CNC Software’s wide presence in small and medium-sized manufacturing enterprises (SME’s) that was a key factor, something that will support Sandvik’s strategic ambitions to develop solutions to automate the manufacturing value chain for SMEs.
Combining the strengths of Mastercam with Sandvik’s offering and know-how within machining is expected to be an important enabler in automating the customers’ end-to-end manufacturing processes.
“Mastercam will be the cornerstone in Sandvik’s CAM portfolio,” said Mathias Johansson, president of the Design & Planning Automation Division in Sandvik Manufacturing Solutions. He added: “Further improving machining productivity by combining our machining know-how with their CAM expertise to improve quality and reduce waste for our customers.
“Specifically, we will leverage data capture and use to secure efficient tool selection and tool path optimisation for our customers. I look forward to welcoming the CNC Software team to Sandvik.”
CNC Software is an independent, family-owned company founded in 1983, headquartered in Tolland, Connecticut, USA, with 220 employees.
Although no purchase price has been mentioned, CNC Software’s revenue for 2020 totalled $60 million, and has had a historical annual growth rate of approximately 10 per cent, and it expects to outperform the estimated market growth of 7 per cent this year.
In the last 12 months, Sandvik has made headlines with a stream of acquisitions – Cambrio CAM software and CGTech’s stable of software – investments in start-ups like Oqton, and partnerships with the likes of GE Additive and HCL CamWorks.