Hexagon's shocking acquisition of 3D Systems' software sparks debate
- Hexagon has acquired the Geomagic suite from 3D Systems for $123 million.
- The Geomagic suite includes tools for creating 3D models from various sources and offers automation features.
- This acquisition is aimed at enhancing Hexagon's software capabilities and strengthening its market position in manufacturing.
In Stockholm, on December 12, 2024, Hexagon announced its acquisition of the Geomagic suite from 3D Systems for $123 million. The Geomagic suite consists of several software packages, including Design X, Control X, Freeform, and Wrap, all aimed at creating high-quality 3D models from varying sources, such as laser scans. This acquisition allows Hexagon to automate the processing of 3D scan data, enabling the generation of digital models from physical objects, which can then be used in manufacturing through history-based parametric CAD models. The Geomagic tools have versatile applications, including free-form design, modification of existing CAD models, and inspection of finished parts for quality assurance. With the integration of these capabilities, Hexagon Manufacturing Intelligence seeks to not only bolster its existing software offerings but also to enhance its leadership status in the markets of 3D metrology and reengineering. This acquisition aligns with Hexagon's shift towards providing more user-friendly tools that can handle complex manufacturing tasks effectively. Furthermore, this acquisition is poised to improve customer offerings by combining the Geomagic's software solutions with Hexagon's portfolio centered around portable metrology sensors. The deal is estimated to improve Hexagon's market strategies and increase the company's capability to deliver innovative solutions that facilitate faster market readiness for high-quality products, thus reinforcing Hexagon's competitive advantage. The transaction's success is awaiting regulatory approvals and customary conditions, expected to finalize by the beginning of the second quarter of 2025. As of 2023, the acquired software business had approximately 100 employees and was generating annual revenues of about $30 million with favorable operating margins. The acquisition is a strategic move expected to strengthen Hexagon's operational and market position significantly in the 3D modelling and manufacturing sector.