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Sandvik Acquires Michigan-Based Dimensional Control Systems For Undisclosed Sum

Benzinga · 12/29/2021 13:44
  • Sandvik AB (OTC:SDVKYhas acquired Troy, Michigan-based Dimensional Control Systems (DCS), a dimensional quality management software and on-site engineering services provider. Deal terms remain undisclosed.
  • DCS's offerings complement Sandvik's existing portfolio within metrology and will be reported in the Industrial Metrology division, within the business area Sandvik Manufacturing and Machining Solutions.
  • In 2020, DCS had 70 employees, ~SEK 92 million ($10 million) revenues, and an EBITA margin neutral to Sandvik Manufacturing and Machining Solutions.
  • DCS has more than 400 software customers in automotive, aerospace, high-tech electronics, medical devices, and industrial machinery manufacturing - with 10,000 licenses in total.
  • Sandvik expects the deal to have a neutral impact on its EPS initially.
  • Sandvik held cash and cash equivalents of SEK 10.41 billion as of September 30, 2021.
  • In a separate press release, Sandvik stated that Sandvik Mining and Rock Solutions had secured a contract in the EMEA region valued at around SEK 1 billion to supply tunnelling equipment, road headers, and underground drill rigs.
  • The company booked the order in 4Q21 and has scheduled the delivery from 4Q22 until 1Q24.
  • Price Action: SDVKY shares are trading higher by 0.18% at $28.24 on the last check Wednesday.