3D Systems to Buy Cimatron for $97M

(AP) -

Printing company 3D Systems Corp. plans to acquire software maker Cimatron Ltd. for $97 million, the companies announced Monday.

The deal will bring together software and printing products used in 3-D manufacturing.

Cimatron, based in Israel, makes software used for three-dimensional drafting and modeling, including for molds and other tools. 3D Systems, based in Rock Hill, South Carolina, makes printers, print materials and other parts used for 3-D printing.

3D will pay $8.97 for each share of Cimatron, a premium of 48 percent over its Friday closing price of $6.08. The company says the deal will add immediately to its adjusted earnings.

The boards of both companies have approved the transaction. It still needs approval of Cimatron’s shareholders. The deal is expected to close in the first quarter of 2015.

On Monday, Cimatron shares soared 42.7 percent to $8.65, while shares of 3D Systems rose 6.7 percent to $37.50.