For the price of $305 million – subject to customary closing conditions and adjustments -, Simbionix, 3D Systems’ medical simulation business, will become a company of Surgical Science Sweden AB, a provider of virtual reality simulators for medical training.
This sale follows the acquisition of its On-Demand 3D Printing and Custom Manufacturing Business by Trilantic North America. It also marks another move of its restructuration strategy to cope with Covid-19 consequences.
According to the Additive Manufacturing Company, selling Simbionix will complete its intent to divest non-core businesses in order to focus exclusively on its strategic purpose as the leader in enabling additive manufacturing solutions for applications in growing markets that demand high-reliability products.
“Over the last several months, 3D Systems has divested a number of assets that are not core to our industry-leading additive manufacturing solutions business,” said Dr. Jeffrey Graves, president & CEO, 3D Systems. “The final of these is our Simbionix business, under the leadership of Ran Bronstein, which has secured a strong position in the medical simulation, training and robotic surgery market. As the Simbionix team now joins forces with Surgical Science, I believe their future will be even brighter, with increased scale and an ability to leverage the core strengths of both businesses in a growing medical simulation market.”
Dr. Graves continued, “The proceeds from this sale, combined with previously announced divestitures, will leave us in a strong position, with a cash balance of approximately $500 million and no debt. Having reorganized the company into two business units – Healthcare and Industrial Solutions – and restructured to drive operational efficiencies over the last year, we now move forward expecting strong organic growth and profitability, at both a gross margin and EBITDA margin level, and positive operating cash flow capable of sustaining the investments needed to meet increasing customer demand for additive technology. With our scale, our industry-leading breadth of technology, which spans polymer and metal solutions, and an applications focus that is proving successful in accelerating customer adoption of additive manufacturing, we are very well positioned to remain a leader in the additive manufacturing industry.”
Apart from the new companies it acquired – Allevi, Inc. and Additive Works – to build its bioprinting and software portfolios, respectively, 3D Systems also plans to expand its facilities in Rock Hill, South Carolina and Littleton, Colorado to address rising customer demand for additive manufacturing technologies.
Furthermore, from a management perspective, Dr. David Leigh joined the company as the new Chief Technology Officer for Additive Manufacturing. He will help expand and accelerate application development and product innovation including all hardware, software, and materials development for production-scale additive manufacturing solutions.
In the meantime, let’s note that Simbionix reported sales in 2020 of $40.8 million. 3D Systems expects completion of the Simbionix transaction to occur in August 2021.
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