Global industrial engineering company Sandvik AB has agreed to buy software developer CGTech of Irvine on undisclosed terms.
CGTech, with about 180 employees and a base in the Spectrum area of the city, develops computer programs to help guide computerized industrial machines in the aerospace industry, among other sectors. It was reported to have 2019 sales in the $53 million range.
Sandvik media relations manager Martin Blomgren said the acquisition is aligned with the new owner’s strategy to expand in design and planning.
“There are no redundancies in personnel and the focus going forward will be to continue the strong heritage of a highly skilled, customer-centric organization and invest in it for future growth,” Blomgren told the Business Journal on Oct. 30 regarding CGTech.
He said that CGTech President Jon Prun will continue in his current capacity.
Blomgren added: “We are continuously looking for new business opportunities in all markets and are taking a long-term strategic view on strengthening and developing our businesses. This acquisition supports our overall business strategy.”
The Irvine business will be part of Sandvik Coromant, a division within Sandvik Machining Solutions that supplies cutting tools and other tools for metal working. Sandvik Coromant owns over 3,100 patents worldwide, employs over 7,900 staff, and is represented in 150 countries.
Computer, Machine
CGTech makes software that enables computerized simulation and verification, used foremost in the process of metal-cutting in the manufacturing industry.
The CGTech software is key for computer numerical control (CNC) machines, which process a piece of metal or other material to meet specifications. The machines follow a coded programmed instruction and without a manual operator directly controlling the machining operation.
CGTech’s Vericut software has been used to simulate CNC machining in order to detect errors, potential collisions or areas of inefficiency. The company says Vericut can save time, increase quality, save money, increase productivity and build confidence, among other advantages.
“Vericut gives you realistic 3D simulations of entire CNC machines, just like they behave in the shop, with the most accurate collision-detection available,” the company says.
The company’s highly technical description: “CGTech specializes in numerical control (NC/CNC) simulation, verification, optimization and analysis software technology for manufacturing.”
‘Take Control’
Aerospace Manufacturing Magazine said in February CGTech products ensure that machine tools and manufacturing processes that serve the aerospace industry “operate more efficiently with increased profit levels.”
“Machine shops can take back control and get ahead with Vericut,” the magazine added.
Stefan Widing, president and CEO of Sandvik, said the CGTech acquisition is in line with the company’s “special focus on software solutions close to machining.”
The combined machining expertise of Sandvik Coromant and CGTech will enhance the group’s capabilities in machining intelligence, strengthen the software offering and facilitate an improved presence in key areas of the customer value chain, according to a Sandvik statement.
The CGTech acquisition is expected to close by the end of this year and is subject to regulatory approvals.
