Sandvik to acquire Cimquest to strengthen CAM market presence
Sandvik AB, a global engineering group, has entered into a definitive agreement to acquire Cimquest Inc., a leading United States-based reseller of Computer Aided Manufacturing (CAM) solutions and a prominent member of the Mastercam reseller network. This acquisition is poised to significantly enhance Sandvik’s footprint in the CAM domain, leveraging Cimquest’s extensive experience and market position to bolster customer service capabilities and broaden its customer base.
At the heart of this strategic move is Sandvik’s aim to deepen its capabilities within the digital manufacturing sphere, particularly within the CAM sector. Cimquest, with its rich history since 1990 as a Mastercam reseller, brings to the table a wealth of expertise in CAD/CAM software solutions catering to manufacturing industries. The company also stands out as a distributor of additive products, including 3D printers for both metal and polymers, enhancing Sandvik’s product offerings in the additive manufacturing space.
Stefan Widing, President and CEO of Sandvik, emphasized the significance of this acquisition, stating, “The acquisition of Cimquest is another step in our strategic direction to grow in the digital manufacturing space, and an important investment in Mastercam’s channels. This will strengthen our presence within CAM, expand our ability to serve customers and improve our growth platform going forward.”
Founded in 1990 and headquartered in Branchburg, New Jersey, Cimquest boasts a dedicated team of 55 employees. The company reported revenues of approximately 26 million USD in 2023, underscoring its strong market position and financial health. With this acquisition, Cimquest will be integrated into the Mastercam business unit and will be reported within Sandvik Manufacturing and Machining Solutions business area.
The financial details of the transaction have been kept confidential, but the impact on Sandvik’s EBITA margin is expected to be minimal, with a positive influence on earnings per share. This acquisition marks a significant milestone in Sandvik’s ongoing strategy to expand its digital manufacturing capabilities and reinforces its commitment to innovation and customer-centric solutions in the CAM market.
This strategic acquisition by Sandvik of Cimquest underscores the growing importance of digital manufacturing technologies and the CAM market’s pivotal role in this transformation. It highlights the value of strategic partnerships and acquisitions in enhancing market reach, technological capabilities, and customer service excellence. As the manufacturing sector continues to evolve with digital innovations, such strategic moves are crucial for companies aiming to maintain and enhance their competitive edge in a rapidly changing industry landscape.