STL Models for CNC Professionals

New Zealand-based chipmaker Cisco has revealed it will sell its cnc chipmaking unit to an Australian company in a deal worth $US1.8 billion.

Key points:Cisco says the deal will allow the company to expand its presence in AustraliaCisco has already been making chips in Australia for the past five yearsThe chipmaker said the deal could bring up to 500 jobs to AustraliaCNC router maker and parts supplier CNCLathe will be sold in the US, which is Cisco’s largest customer, to a buyer in the Americas.

Cisco said the acquisition would bring up.US$1.9 billion ($1.35 billion) in cash and stock for the two companies.

“The acquisition is a strategic partnership with CNC Lathe and is a natural progression in Cisco’s strategic plan,” Cisco chief executive, Michael Pachter, said in a statement.”CNC Latche is one of the world’s leading makers of cnc routers, and our relationship with CncLathe is about expanding our presence in the industry and expanding our business in the world.”

Mr Pachters statement added that the deal would enable Cisco to expand the presence in this important market in the United States and further strengthen its relationship with the US and global industry.

The US is Cisco ‘s biggest customer, accounting for about 80 per cent of the company’s worldwide sales.CNC routers are machines that connect two or more machines together to form a computer system.

Cecilie Liddell, the company ‘s senior vice president of product and innovation, said the purchase was the culmination of the firm ‘s recent acquisition of Australian-based CNC router supplier CnC Lathe.

“This transaction represents an exciting new chapter in our growth and growth capabilities, and we look forward to continuing to invest in our operations and operations capabilities in Australia and the United Kingdom as we build upon our successful and profitable partnership with Australian CNC Router Supply,” she said.

The sale of CNC routers to a US buyer comes at a time when Cisco is struggling to meet the demands of growing customers like Apple, Google and Microsoft.

Mr Pacheter said Cisco’s growth in the U.S. had accelerated significantly in the past year, with sales up by more than 10 per cent in the first half of 2017.

He said the company was now able to focus on the growing demand for cnc chips in the home, with more than 60 per cent coming from new customers.

“It is important to note that we expect our U.K. sales to continue to grow strongly over the next few quarters and the combined company will have a very strong position in the market,” Mr Pachting said.

“We look forward for Cisco to continue growing its business in Europe and beyond in the years ahead.”



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