3D Systems Announces Sale of Medical Simulation Business, Simbionix
In late July 2021, 3D Systems announced that a definitive agreement to sell the company’s medical simulation business, Simbionix, to Surgical Science Sweden had been signed. The acquisition purchase price was reportedly $305 million, but is subject to customary closing conditions and adjustments. According to 3D Systems, this sale will complete the company’s initiative to divest non-core businesses in order to focus exclusively on its strategic purpose as the leader in enabling additive manufacturing solutions for applications in growing markets that demand high-reliability products.
Surgical Science Sweden AB is a leading supplier of virtual reality clinical simulators for medical training. The company believes that one of the biggest challenges within healthcare globally is how injuries during care can be reduced. As medical education and training are key, the Surgical Sciences promotes that a large part of today’s medical training can be performed outside the operating room.
“Over the last several months, 3D Systems has divested a number of assets that are not core to our industry-leading additive manufacturing solutions business,” said Dr. Jeffrey Graves, president and CEO of 3D Systems. “The final of these is our Simbionix business, under the leadership of Ran Bronstein, which has secured a strong position in the medical simulation, training and robotic surgery market. As the Simbionix team now joins forces with Surgical Science, I believe their future will be even brighter, with increased scale and an ability to leverage the core strengths of both businesses in a growing medical simulation market.”
Graves added that the proceeds from this sale, combined with previously announced divestitures, will leave 3D Systems in a strong position, with a cash balance of approximately $500 million and no debt. Having reorganized the company into two business units — Healthcare and Industrial Solutions — and restructured to drive operational efficiencies over the last year, he says the company can now move forward. Graves now expects strong organic growth and profitability, at both gross margin and EBITDA margin levels, and positive operating cash flow capable of sustaining the investments needed to meet increasing customer demand for additive technology.
“With our scale, our industry-leading breadth of technology, which spans polymer and metal solutions, and an applications focus that is proving successful in accelerating customer adoption of additive manufacturing, we are very well positioned to remain a leader in the additive manufacturing industry,” Graves said in a press release.
Through this transaction, Simbionix will be integrated with Surgical Science to form a market-leading company in the simulation of medical procedures, including advanced robotic surgery. Simbionix complements and strengthens Surgical Science’s position with a broad portfolio of simulators in areas such as general surgery, endovascular procedures, endoscopy, urology, orthopedics, ultrasound, and robotic surgery. Simbionix also brings long-established collaborations with leading medical technology companies and academic institutions that are at the forefront of developing new robotic surgery technology and operating procedures.
More About 3D Systems
More than 30 years ago, 3D Systems brought the innovation of 3D printing to the manufacturing industry. Today, the company brings innovation, performance, and reliability to every interaction — empowering customers to create products and business models never before possible.
Each application-specific solution is powered by the expertise of an application engineer who collaborates with customers to transform how they deliver their products and services. 3D Systems’ solutions address a variety of advanced applications in healthcare and industrial markets such as medical and dental, aerospace and defense, automotive, and durable goods.
Earlier in 2021, 3D Systems announced initial investments to bolster the company’s leadership position with the acquisition of Allevi, Inc. and Additive Works to build the company’s bioprinting and software portfolios, respectively. Since then, 3D Systems has also announced planned expansions of its facilities in Rock Hill, South Carolina and Littleton, Colorado to address rising customer demand for additive manufacturing technologies.
Additionally, 3D Systems recently expanded the company’s technology leadership team by welcoming Dr. David Leigh as its new chief technology officer for Additive Manufacturing to expand and accelerate application development and product innovation including all hardware, software, and materials development for production-scale additive manufacturing solutions. Dr. Leigh’s arrival has enabled 3D Systems’ co-founder, Chuck Hull, to increase his emphasis on biotechnology as chief technology officer for Regenerative Medicine, leading the development of solutions that are creating exciting new opportunities in regenerative medicine.
More About Surgical Science Sweden AB
Headquartered in Gothenburg, Sweden and present in Stockholm, Sweden, Surgical Science is a world leader in the manufacturing of virtual reality simulators for evidence-based laparoscopic and endoscopic training. The company’s clinical simulators for laparoscopy and endoscopy are used by medical training centers and institutes worldwide for practice, validation and certification of students, surgeons, and medical doctors.
The simulators enable surgeons and other medical specialists to train and improve their psychomotor skills and instrument handling before entering the operating room. In parallel with the company’s own products, Surgical Science works with clinical simulation solutions for medical technology companies that develop surgical instruments for clinical use, such as robotic surgery.
Lance Baily, BA, EMT-B, is the Founder & CEO of HealthySimulation.com, which he started while serving as the Director of the Nevada System of Higher Education’s Clinical Simulation Center of Las Vegas back in 2010. Lance is also the Founder and acting Advisor to the Board of SimGHOSTS.org, the world’s only non-profit organization dedicated to supporting professionals operating healthcare simulation technologies. His new co-edited Book: “Comprehensive Healthcare Simulation: Operations, Technology, and Innovative Practice” is available now. Lance’s background also includes serving as a Simulation Technology Specialist for the LA Community College District, EMS fire fighting, Hollywood movie production, rescue diving, and global travel. He lives with his wife Dr. Abigail Baily in Las Vegas, Nevada with their newborn daughter and two crazy dachshunds.