3D Systems Corporation (NYSE:DDD) shares are trading higher premarket on Thursday after the company inked a definitive agreement to sell its Geomagic software portfolio to Hexagon's Manufacturing Intelligence Division for $123 million.
The Geomagic portfolio includes tools like Design X, Control X, Freeform, Wrap, and Geomagic for SolidWorks, widely used in reverse engineering to create digital models from physical objects for manufacturing.
This move follows a strategic review of the company's software investment strategy. The transaction is expected to close in the first half of 2025, pending regulatory reviews.
Post-divestiture, 3D Systems will focus on core software platforms—3D Sprint, 3DXpert, and Oqton Industrial Manufacturing OS—to drive 3D printing adoption.
This strategic focus will accelerate software development, leverage AI and machine learning, and enhance AM adoption in high-reliability production environments, increasing value for customers and shareholders.
Jeffrey Graves, president & CEO, 3D Systems said, "The changes we're announcing today will sharpen our focus on those software platforms that are most critical to our customers' success in this new-use environment."
"By streamlining our software operations, focusing exclusively on our core platforms, and leveraging the exceptional capabilities that AI is now making available to us, we will be better positioned to support our customers' most critical requirements as they move 3D printing into high-volume production environments."
As of September 30, 2024, 3D had cash and cash equivalents of $190.0 million.
Investors can gain exposure to the stock via 3D Printing (The) ETF (BATS:PRNT) and ProShares S&P Kensho Smart Factories ETF (NYSE:MAKX).
Price Action: DDD shares are up 2.08% at $3.44 premarket at the last check Thursday.
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