Livingstone develops a cutting-edge technology deal

February 2006

Pathtrace, the Reading-based developers of the EdgeCAM software system for computer-aided manufacturing (CAM), has been sold to Planit Holdings plc for £5 million. EdgeCAM is recognised as the industry leading CAM solution for solids-based metal cutting in the production machining and mould & die markets. Having received a number of unsolicited approaches from companies wishing to acquire the business, chairman Brian Steatham, who established Pathtrace in 1982, asked Livingstone to assess the interest that had been shown and introduce other purchasers.

A strong brand name, a worldwide customer base served by subsidiaries in America and Japan, and a network of global resellers, made Pathtrace an attractive asset which resulted in significant interest from purchasers in the UK and overseas. Pathtrace’s existing partner base includes Sandvik Coromant, Autodesk, Dassualt Systemes, Mori Seiki and Doosan Infracore, which added to the interest and represented an exciting proposition for a shortlist of potential purchasers identified by Livingstone.

Tom Phipps, the deal leader on the transaction, says: “We received several offers for the business, all in excess of the amounts offered by the buyers that made the unsolicited approaches. The purchaser, who has made a number of acquisitions, was seeking to consolidate its CAM offering and was particularly attracted by the product functionality and the skills of the Pathtrace team which complements that of Planit. There is a great deal of synergy between the two organisations which allowed our client to select Planit with the knowledge that Pathtrace will continue to develop and deliver value to customers and staff alike.”

Brian Steatham comments “We are very pleased with the sale of the business to Planit Holdings and are grateful for the guidance and support provided by the Livingstone team.”

Tim Lyle, Partner
Tel: 020 7484 4710
Email: tlyle@livingstonepartners.co.uk

Tom Phipps, Deal Leader
Tel: 020 7484 4717
Email: tphipps@livingstonepartners.co.uk