Sandvik said the purchase of CGTech, which develops software for numerical control (NC/CNC) simulation, verification and optimisation, will strengthen Sandvik Coromant, a division within Sandvik Machining Solutions.

"This is in line with our strategic focus to grow organically and through acquisitions in the digital manufacturing space, with special focus on software solutions close to machining," says Stefan Widing, President and CEO of Sandvik.

The CGTech products that the Swedish company can leverage through the acquisition include the former's VERICUT machining simulation and optimisation software.

VERICUT simulates CNC machining, additive, and hybrid manufacturing processes. The software operates independently, but can also be integrated with Computer-aided manufacturing (CAM) systems.

"It's exciting to say that we are able to expand our capabilities with CGTech" said Nadine Crauwels, president of Sandvik Machining Solutions.

"This will not only strengthen our leading market position in all parts of the world but will as well enable us to take a big step forward in offering full machining solutions to our customers, which will reduce waste significantly in their broader value chain."