3D Systems, Rock Hill, South Carolina, USA, has signed a definitive agreement to sell its medical simulation business Simbionix to Surgical Science Sweden AB, a leading supplier of virtual reality simulators for medical training, for a purchase price of $305 million. 3D Systems expects completion of the Simbionix transaction to occur in August 2021, which will complete the company’s initiative to divest non-core businesses in order to focus exclusively on Additive Manufacturing.
“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,” stated Dr Jeffrey Graves, president & CEO. “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 reorganised 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.”
Earlier this year, 3D Systems acquired Allevi, Inc, for its bioprinting portfolio and the software company Additive Works, as well as announcing planned expansions of facilities in Rock Hill, South Carolina, and Littleton, Colorado, to address rising customer demand for AM. Additionally, the company expanded its technology team by taking on Dr David Leigh as its new CTO for Additive Manufacturing to expand and accelerate application development and product innovation including all hardware, software, and materials development for production-scale AM solutions.
“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.”