Software developer Intercad has acquired rival Solidtec Solutions in a multimillion-dollar deal.
Intercad sales and marketing director Mark Deree-Jones said the acquisition would boost the company's profitability by increasing its economies of scale. "The amount of investment needed to provide excellent service means that you need an economies of scale. We'll be able to provide our suite of services to a larger customer base."
Deree-Jones told CRN the acquisition would increase Intercad's customer base by "around 30 percent".
"From a customer perspective they're looking for levels of service and support that can help them continue their business. That's mainly the purpose of the acquisition."
Not all of Solidtec's staff will be retained under the acquisition. Deree-Jones said "more than 75 percent" of the company's 28 staff would join Intercad's 70 employees.
Both companies have offices in Sydney, Brisbane, Adelaide, Perth and Melbourne in Australia, with additional offices in Auckland and Christchurch in New Zealand. Offices will be consolidated once leases run their course, Deree-Jones said.
3D printing
Intercad is "tracking for more than double-digit growth" for the financial year, with Deree-Jones crediting the uptake of 3D printing with the company's performance.
The disruptive technology complements Intercad's core competency, Deree-Jones said. "Our software allows you to design [a product] from scratch, show it in 3D and create a complete management system that allows anyone to access it. By doing it in 3D, you could also use our 3D printers to create a prototype."
Deree-Jones said the new technology is quickly gaining sales momentum.
"Demand is ever increasing, especially in the commercial environment. Our 3D printer growth has doubled."
