US software giant Autodesk is to acquire Delcam, the Birmingham-based CAM software developer, for £172 million.
Autodesk, one of the biggest manufacturing software companies, plans to buy the British Delcam for £20.75 per share in a cash-for-shares offer.
Subject to regulatory approvals the deal is expected to close in the second half of 2014 (Autodesk’s first quarter of fiscal 2015). Autodesk says it plans to use non-US based cash for the purchase.
“Today we are taking an important step on our path toward delivering a better manufacturing experience,” said Carl Bass, Autodesk president and CEO. “Together Autodesk and Delcam will help further the development and implementation of technology for digital manufacturing.”
The Birmingham-based business is a leading supplier of CADCAM and measurement solutions for the manufacturing industry. Its design and inspection software provides automated CADCAM solutions for a variety of industries, ranging from aerospace to toys and sports equipment.
The £47m turnover company, which has more than 30 offices and about 600 employees worldwide, was founded in 1977 as a spin-out from the University of Cambridge.
Clive Martell, Delcam CEO said “I am very excited by the opportunities from combining Delcam with Autodesk to create a compelling platform from which to service both companies’ manufacturing clients.”
“The offer is at a level which recognizes the potential of Delcam and provides an attractive opportunity for shareholders to realize value for their current holdings in cash, while at the same time opening up new opportunities for our staff and partners operating within the wider platform of the Autodesk group.”
Delcam was a regular on overseas trade trips with UK Trade & Investment in the last five years, and was frequently touted by business groups as a British manufacturing success story.