Why 3D Systems Stock Popped 10% This Morning
Additive manufacturing machine-maker 3D Systems (NYSE: DDD) is selling some subsidiaries and 3D Systems shares are flying higher this morning. In early trading Tuesday, 3D Systems stock recorded nearly a 10% gain before retreating to about a 8.6% rise as of 10:05 a.m. EST.
So what exactly is 3D Systems selling, and why are investors interpreting the sales as good news? In a press release this morning, 3D advised that it has signed an agreement to sell its Cimatron CAD/CAM software and GibbsCAM CNC programming software businesses to private equity firm Battery Ventures for a combined purchase price of $65 million.
Now, the sales of these subsidiaries per se may not be huge news. The $65 million sum is so small it wouldn't even offset the losses 3D as a whole has incurred over the past 12 months. Rather, these sales are important for two other reasons:
Source Fool.com
