3D Systems Sells Geomagic Software Portfolio for $123 Million

A recent report reveals that 3D Systems Corp. has entered into a definitive agreement to sell its Geomagic software portfolio to Hexagon AB for $123 million. This strategic move is set to have implications for both 3D Systems and Hexagon in the software and 3D modeling markets.

Date: 12-12-2024

AI Rating: 6

The report highlights a significant transaction involving 3D Systems Corp. (DDD) and Hexagon AB (HXGBF.PK), where 3D Systems is selling its Geomagic software portfolio for $123 million. This deal is positioned as part of a strategic review concerning 3D Systems' software investment strategy.

One important data point mentioned is that in 2023, the Geomagic software business generated revenues of approximately $30 million. This revenue figure indicates the software's performance and sets expectations for how its sale might impact 3D Systems’ financials. However, there is no mention of earnings per share (EPS), net income, profit margins, free cash flow (FCF), or return on equity (ROE) related to this transaction.

Operating margins have been mentioned to be accretive to those of Hexagon's Manufacturing Intelligence division, suggesting a positive synergy from this acquisition. This could imply an improvement in profit potential for Hexagon, thus reflecting a positive outlook for the company's stock.

Furthermore, Hexagon's interim President and CEO emphasized the deal's strategic benefits and its potential to enhance their market leadership in 3D metrology and reengineering, which suggests a solid strategic fit and future growth prospects for Hexagon.

In summary, while the sale indicates a shift in strategy for 3D Systems, it could positively affect Hexagon's positioning in the market, although there are no direct indicators of significant profitability impacts for 3D Systems at this stage.

Stocks: DDD HXGBF