CIMdata PLM Industry Summary Online Archive
July 5, 2007
Acquisitions
Cimatron Completes The Increase of its Holding in Microsystem to 51%-Consolidated Results From Q3 2007
Cimatron Limited, a leading provider of integrated CAD/CAM solutions for the toolmaking and manufacturing industries, today announced that it has completed the exercise of its previously disclosed first call option to acquire an additional 23.5% of the shares of Microsystem Srl, the company's Italian distributor, and accordingly, to increase Cimatron's holding in Microsystem from 27.5% to 51%. Cimatron will be entitled to exercise its second call option to acquire the remaining 49% of Microsystem's share capital during a thirty-day period starting July 3rd 2008 and ending August 2nd 2008, during which period Microsystem's other shareholders are also entitled to exercise a put option requiring Cimatron to purchase such shares. Microsystem's financial results will be fully consolidated into Cimatron's financial results from Q3 2007, subject to exclusion of minority interest.
Commenting on the closing, Danny Haran, President and Chief Executive Officer of Cimatron, said, "We are pleased to complete the increase of our holding in Microsystem to 51%, as we believe it would increase not only our revenues, but our profitability as well.
As we had previously announced, Cimatron's growth strategy is based on internal growth, as well as on mergers and acquisitions. We intend to keep looking for M&A opportunities in order to further enhance our product offering and distribution network.
Cimatron's strong financial position enables us to finance the Microsystem deal from internal resources and to further develop our growth. We believe that being a larger company will open new opportunities to Cimatron in the CAD/CAM industry."
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