Sandvik to acquire metrology software company Metrologic Group
In line with its strategic agenda to broaden Sandvik Machining Solutions’ customer offering in digital manufacturing, Sandvik intends to acquire the French software company Metrologic Group from Astorg Partners at a price of 360 million EUR, on a cash and debt free basis.
Headquartered in Meylan, France, Metrologic Group is a market leader in agnostic metrology software. In its fiscal year ending in September 2017 Metrologic Group generated revenues of 43.3 million EUR with an EBITDA margin which would be accretive to that of Sandvik Machining Solutions. Metrologic Group would form a new business unit within a new product area in Sandvik Machining Solutions and would maintain brand independence, in line with Sandvik's decentralized business model. The Metrologic Group management team would remain with the company.
“I am very pleased about this first material step towards an increased offering in digital manufacturing in Sandvik Machining Solutions. This enables a broadened customer offering covering more of the total manufacturing value chain”, says Björn Rosengren, President and CEO of Sandvik.
Metrologic Group’s offering includes agnostic software for metrology, automation and robotics control as well as services for calibration and 3D-measuring. Products are used globally in most industries, including automotive, aerospace, energy, general engineering and consumer goods, all similar to that of Sandvik Machining Solutions.
The combined offering of Sandvik Machining Solutions and Metrologic Group would help customers achieve a more seamless manufacturing chain by linking the machining and quality assurance processes.
“By merging Sandvik Machining Solutions’ know-how about materials, customer applications and machining processes with Metrologic’s deep understanding of measurement technology, we would be able to further expand the offering of increased productivity. I am convinced that this step towards increased digital manufacturing will be key for continued success for Sandvik Machining Solutions”, says Klas Forsström, President of Sandvik Machining Solutions.
The transaction is expected to close mid-2018 following consultation with works council and is subject to customary regulatory approvals. Impact on earnings per share will initially be neutral to slightly positive.
There will be a conference call related to the intended acquisition on 27 April 2018 at 13.00 CET for analysts, investors and financial media. The conference call will be broadcasted live on Sandvik’s website. Please see home.sandvik for the dial-in details and presentation material.
Dial-in numbers for the conference call:
Sweden: +46 8 566 425 09
UK: +44 203 008 9807
US: +1 8 558 315 944
For further information, contact Ann-Sofie Nordh, Vice President Investor Relations, tel: +46 8 456 14 94 or Martin Blomgren, Press and Media Relations Manager, tel: +46 70 577 0549.
Stockholm, 27 April 2018
Sandvik is a high-tech and global engineering group offering products and services that enhance customer productivity, profitability and safety. We hold world-leading positions in selected areas – tools and tooling systems for metal cutting; equipment and tools, service and technical solutions for the mining and construction industries; products in advanced stainless steels and special alloys as well as products for industrial heating. In 2017, the Group had approximately 43,000 employees and sales of 91 billion SEK in more than 150 countries within continuing operations.
Metrologic Group develops innovative leading edge 3D inspection software and electronics which run measurement machines used for dimensional control notably in the automotive, aeronautic, transport and medical sectors. With over thirty years of experience, Metrologic provides its customers with high performing 3D measuring software, renowned for its superior degree of accuracy, ease of use, processing speed and for its compatibility with all machines available on the market. The Company is headquartered in Meylan, France and has subsidiaries in the USA, Germany, Spain, Italy, Brazil and China and is backed by an international sales network of distributors located in over 30 countries.