BREAKING NEWS: 3D Systems sells Geomagic to Hexagon
The Atomic Layers: S5E12 (00128)
Atomic Layer of the Day:
It may seem quite logical and obvious, yet it is still surprising. 3D Systems has announced the sale of Geomagic—a comprehensive portfolio of software for reverse engineering, design, and quality control, which it acquired 12 years ago. The new owner will be Hexagon, a global technology company specializing in digital reality solutions, integrating advanced sensors, software, and autonomous technologies. Hexagon is particularly strong in the field of 3D scanning technologies and CAD software, making it a natural buyer for the Geomagic portfolio.
The transaction is valued at $123 million and is expected to close in the first half of next year. It includes software packages such as Design X, Control X, Freeform, Wrap, and Geomagic for SolidWorks.
Geomagic is one of the best toolkits for reverse engineering, design, and quality control. It enables processing data collected with a 3D scanner and transforming it into CAD models. The software is used to create digital models of physical objects, design from scratch, and perform precise part inspections.
As one of the few tools on the market, it allows free editing of objects saved in .STL format, which is particularly important in medicine and surgery, where work often involves 3D scans created using both traditional methods and those derived from DICOM.
The official rationale for the sale of Geomagic is that 3D Systems decided to focus on developing its other software—3D Sprint, 3DXpert, and Oqton Industrial Manufacturing OS, which are dedicated to mass production using 3D printing technology. The company also plans to invest in artificial intelligence and machine learning, all tailored to additive manufacturing.
On the other hand, the financial results for the third quarter of 2024 and the estimated year-end outcome suggest there might be more to this story. The company continues to generate losses, and its cash reserves are dwindling. The $123 million that will reach the company’s coffers between the first and second quarters of 2025 will undoubtedly bring some peace of mind to its accountants, whose Excel cells remain stubbornly red.
At this point, I can’t help but reference history. And the history of Geomagic is a beautiful one…
Geomagic was founded in 1997 by Ping Fu and Herbert Edelman in Chapel Hill, North Carolina. Initially, the company focused on technology for processing point cloud data into 3D models. As early as the 1990s, Geomagic became one of the leaders in reverse engineering, enabling the recreation of digital models of physical objects in CAD format.
The company received numerous awards and distinctions in industry competitions, including the Computer Graphics World Innovation Award in 1998.
Between 2000 and 2010, the company introduced key software: Geomagic Studio—for processing scan data into CAD models, Geomagic Control—for inspection and quality control, and Geomagic Wrap—for creating 3D meshes and modifying designs.
Geomagic established partnerships with companies producing 3D scanners, enabling software integration with devices such as those from Faro and Creaform.
In January 2013, Geomagic was acquired by 3D Systems for $55 million. The transaction was part of 3D Systems’ strategy to expand its portfolio of software supporting 3D printing processes. Following the acquisition, Geomagic products such as Design X and Control X were integrated with other 3D Systems solutions, like Rapidform, acquired a year earlier.
After being acquired by 3D Systems, Geomagic expanded its offerings with more advanced features, including better integration with additive manufacturing and improved data analysis. Geomagic products began to be used in various industries such as automotive, aerospace, and medicine for prototyping, manufacturing spare parts, and quality inspection.
The sale of Geomagic to Hexagon marks the end of more than a decade of development under the wing of 3D Systems. Thanks to this transaction, Hexagon will gain a comprehensive tool for managing reverse engineering processes, while 3D Systems will focus its resources on developing 3D printing technologies for mass production.
Interestingly, while selling the Geomagic portfolio for $123 million seems like a great price considering its legacy, it is somewhat surprising that the buyer turned out to be Hexagon and not one of the biggest players—Autodesk, Dassault Systèmes, or Siemens. Or at least Materialise?
Atomic Layer from the Past:
12-12-2014: Impossible Objects received a $2.8 million investment to create “the world’s fastest 3D printer.
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