3D Systems Corporation, Rock Hill, South Carolina, USA, completed the previously announced sale of its Cimatron and GibbsCAM software businesses to a subsidiary of ST Acquisition Co., an affiliate of Battery Ventures, on January 1, 2021. The resulting purchase price of approximately $64.2 million, after certain adjustments and excluding $8.9 million of cash amounts, were transferred to the buyer.
“The divestiture of Cimatron and GibbsCAM, which were businesses focused on subtractive technologies, was an important step in our plans to refocus our company on our core mission: To be the leader in enabling Additive Manufacturing solutions for applications in growing markets that demand high-reliability products. These divestitures strengthened our balance sheet, enabling us to both pay off our debt and terminate the ATM Program much earlier than originally planned,” stated Dr Jeffrey Graves, president and CEO of 3D Systems.
Using a portion of the proceeds from the sale, the company reportedly paid off approximately $21 million of outstanding balances under its senior secured term loan facility. With the paydown of the term loan, the company is now free of any outstanding debt, but continues to have availability under its senior secured revolving credit facility, which remains fully undrawn. The company also terminated the previously announced at-the-market equity program (ATM Program), under which no shares of common stock were sold during the fourth quarter of 2020.