Sandvik AB, Stockholm, Sweden, has acquired Dimensional Control Systems (DCS), headquartered in Troy, Michigan, USA, a provider of dimensional quality management software and on-site engineering services. DCS’s offering is expected to complement and enhance Sandvik’s existing portfolio within metrology. The company will be reported in the Industrial Metrology division within the Sandvik Manufacturing and Machining Solutions business area.
“This acquisition is in line with our strategic focus to grow in the digital manufacturing space, with special attention on industrial software close to component manufacturing,” stated Stefan Widing, president and CEO of Sandvik. “Dimensional Control System’s offering, in combination with our extensive manufacturing know-how, will enhance Sandvik’s overall digital offering – and specifically our industrial metrology solutions.”
DCS’s software solutions include CAD simulation tools, enabling customers to improve and validate their component design and metrology measurement plan – resulting in reduced scrap, rework, downtime and non-conformance issues. The company has more than 400 software customers in automotive, aerospace, high-tech electronics, medical devices and industrial machinery manufacturing – with 10,000 licenses in total. Software revenues represent 65% of total sales, of which 40% are recurring revenues.
Christophe Sut, president of Sandvik Manufacturing Solutions, commented, “Dimensional Control Systems’ software suites have strong underlying growth and will further strengthen our end-to-end metrology solutions by adding three-dimensional analysis and quality assurance capabilities, as well as deep geometric dimensioning and tolerancing expertise. This will significantly improve quality and productivity for our customers, enabling more sustainable manufacturing. I would like to welcome the DCS team to Sandvik.”
DCS has a global network of distributors and resellers. In 2020, the company had approximately seventy employees, revenues of about SEK 92 million (US $10 million) and an EBITA margin neutral to Sandvik Manufacturing and Machining Solutions. DCS’s software business has had a historical annual growth rate of approximately 10% – and is expected to grow at a similar pace going forward. Impact on Sandvik’s earnings per share will initially be neutral. The parties have agreed not to disclose the purchase price.