Maintenance

[TSmcam]

no, that cloud is in Sweden
truth be told, you are probably shouting at clouds too... in private   

There is no clouds. It is just a bunch of putahs on teh internets 

[Zoffen]

They really need to change the color of those yellow coats to green now with all the cash they are rolling in. Cash is technically fabric, make those coats out of washed 100's!

[SuperHoneyBadger]

They really need to change the color of those yellow coats to green now with all the cash they are rolling in.

They really do.
In 2022 there were 262k seats of Mastercam installed. Since then Sandvik spent less than $150M to acquire the software (60M), almost all the resellers, Postability (2.7M) and CGTech (~40M). We know how much a seat costs, boys, the investment turned a profit that quarter for SURE. They're rolling in it, and laughing in European.

[Newbeeee™]

and laughing in European.

Tvust me, EuoPeon iz zee best kind of LoLzing!
 

[mwearne]

They really do.
In 2022 there were 262k seats of Mastercam installed. Since then Sandvik spent less than $150M to acquire the software (60M), almost all the resellers, Postability (2.7M) and CGTech (~40M). We know how much a seat costs, boys, the investment turned a profit that quarter for SURE. They're rolling in it, and laughing in European.

Those numbers look low, where did you find that info?

AD paid ~286 million for Delcam in 2014. Surely MCAM was worth more than that in 2021?

Not that it really matters what they paid, just curious.

[riverhunter]

Looks like the deal was kept quiet.  I did find a link to some revenue numbers that showed they did about 60m in 2020.  so 150m would seem inline or a little on the high.  286m for delcam seems crazy

[SuperHoneyBadger]

Those numbers look low, where did you find that info?

https://www.home.sandvik/en/investors/acquisitions/

All listed there. CNC Software at 60M was the shocker for me, honestly.

[riverhunter]

https://www.home.sandvik/en/investors/acquisitions/

All listed there. CNC Software at 60M was the shocker for me, honestly.

Pretty sure that number was the revenue a the time of purchase.  not the purchase price.  usually that number comes in around 1.5 to 2 x sales.

[SuperHoneyBadger]

Pretty sure that number was the revenue a the time of purchase.  not the purchase price.  usually that number comes in around 1.5 to 2 x sales.

I swear, I can read. Just not headings on tables apparently. Good info to know, thanks!

[SuperHoneyBadger]

https://www.home.sandvik/siteassets/investors/reports--presentations/annual-reports/annual-report-2021.pdf

Also p. 111, there is a table that I am not qualified to interpret regarding fair market value. Maybe it holds some information as well.

[Newbeeee™]

P107
Mcam 60mill$ turnover with 220 employees

ICAM 30mill MSEK turnover with 27 employees (= 2.7mill $)

CGTech 470mill MSEK turnover with 180 employees (= 42.7mill $)

MSEK = Millions, of Swedish Kroner (converted in brackets)


In the other link it showed Postability T/O at 30MSEK ( = 2.7mill $)

[CNCAppsJames]

Pg. 109

Company Unit          Nation     Aquisition Date           Annual Revenue         No. Employees[/i]
CNC Software Inc.           USA         September 29, 2021    $60m USD in 2020     220

[Newbeeee™]

Pretty sure that number was the revenue a the time of purchase.  not the purchase price.  usually that number comes in around 1.5 to 2 x sales.

Yes, it used to be 3x but in the last 10years EBITDA has shown its head as the way to purchase businesses, and that has forced down the ratio.
That said....and stating the obvious, ultimately, a business is only worth what someone will pay for it!

[Aaron]

And look at the other numbers on that list, CAM software (all in on everything on that list) is barely a rounding error on the billions that is the Sandvik monolith.  Sure, they might be rolling in green, but not from the CAM/software side.  I'm guessing that all of this is an attempt to even get proper attention from the corporate office.

"It's nothing personal.  It's just business."

[gcode]

I'm guessing that all of this is an attempt to even get proper attention from the corporate office.

A while back (10 years maybe??) our Sandvik guy came around with a tablet CAM programming device.
I didn't pay much attention as I was trying very hard not to laugh.
I forget what it was actually supposed to do, but it was utterly useless in a real world environment.
They pushed it real hard for a while and then it went away.