diff --git a/gerber2graphtec b/gerber2graphtec
index c20be48..adcf867 100755
--- a/gerber2graphtec
+++ b/gerber2graphtec
@@ -22,6 +22,8 @@ matrix = (1,0,0,1)
 speed = [2,2]
 force = [8,30]
 cut_mode = 0
+merge_threshold = [0.012, 0.01]
+merge = 0
 input_filename = ''
 media_size = (12,11)
 theta = 0
@@ -56,6 +58,9 @@ while argc<len(sys.argv):
   elif x=='--rotate':
     theta = float(sys.argv[argc+1])
     argc = argc + 1
+  elif x=='--merge':
+    merge = int(sys.argv[argc+1])
+    argc = argc + 2
   else:
     input_filename = sys.argv[argc]
     argc = argc + 1
@@ -72,6 +77,7 @@ if not input_filename:
   print '  --cut_mode [0|1]    0 for highest accuracy (fine pitch), 1 for highest speed'
   print '  --media_size x,y    size of media'
   print '  --rotate theta      rotate counterclockwise by theta degrees'
+  print '  --merge [0|1]       merge close smaller structures into one big cutout'
   print ''
   print 'defaults:'
   print '  --offset 4.0,0.5    suitable for letter size (portrait) on the Cameo, fed as "media" not "mat"'
@@ -82,6 +88,7 @@ if not input_filename:
   print '  --cut_mode 0        highest accuracy'
   print '  --media_size 12,11  use a media size of 12 inches in x, 11 inches in y'
   print '  --rotate 0          no rotation'
+  print '  --merge 0           no merging'
   print ''
   sys.exit(1)
 
@@ -105,6 +112,7 @@ else:
 import graphtec
 import pic
 import optimize
+import mergepads
 
 g = graphtec.graphtec()
 
@@ -115,6 +123,11 @@ g.set(matrix=matrix)
 g.start()
 
 strokes = pic.read_pic(temp_pic)
+
+if not merge==0:
+  # merge multiple smaller pads to bigger pads spanning the same area
+  strokes = mergepads.fix_small_geometry(strokes, merge_threshold[0], merge_threshold[1])
+
 strokes = optimize.rotate(strokes, theta)
 strokes = optimize.justify(strokes)
 max_x,max_y = optimize.max_extent(strokes)
diff --git a/mergepads.py b/mergepads.py
new file mode 100644
index 0000000..98f56d4
--- /dev/null
+++ b/mergepads.py
@@ -0,0 +1,216 @@
+# merge multiple small pads to one big pad spanning the same area
+import math
+import numpy as np
+from scipy.spatial import ConvexHull
+
+DEBUG = False
+DEBUG_SVG = True
+
+def log(s):
+    if DEBUG:
+        print(s)
+
+def distance(p1, p2):
+    return math.sqrt(math.pow((p1[0]-p2[0]), 2) + math.pow((p1[1]-p2[1]), 2))
+
+def minimum_bounding_rectangle(npoints, scale = 1.0):
+    """
+    Find the smallest bounding rectangle for a set of points.
+    Returns a set of points representing the corners of the bounding box.
+    source: 
+    https://gis.stackexchange.com/questions/22895/finding-minimum-area-rectangle-for-given-points
+
+    :param points: an nx2 matrix of coordinates
+    :rval: an nx2 matrix of coordinates
+    """
+    from scipy.ndimage.interpolation import rotate
+    pi2 = np.pi/2.
+
+    points = np.array(npoints)
+    # get the convex hull for the points
+    hull_points = points[ConvexHull(points).vertices]
+
+    # calculate edge angles
+    edges = np.zeros((len(hull_points)-1, 2))
+    edges = hull_points[1:] - hull_points[:-1]
+
+    angles = np.zeros((len(edges)))
+    angles = np.arctan2(edges[:, 1], edges[:, 0])
+
+    angles = np.abs(np.mod(angles, pi2))
+    angles = np.unique(angles)
+
+    # find rotation matrices
+    rotations = np.vstack([
+        np.cos(angles),
+        np.cos(angles-pi2),
+        np.cos(angles+pi2),
+        np.cos(angles)]).T
+    rotations = rotations.reshape((-1, 2, 2))
+
+    # apply rotations to the hull
+    rot_points = np.dot(rotations, hull_points.T)
+
+    # find the bounding points
+    min_x = np.nanmin(rot_points[:, 0], axis=1)
+    max_x = np.nanmax(rot_points[:, 0], axis=1)
+    min_y = np.nanmin(rot_points[:, 1], axis=1)
+    max_y = np.nanmax(rot_points[:, 1], axis=1)
+
+    # find the box with the best area
+    areas = (max_x - min_x) * (max_y - min_y)
+    best_idx = np.argmin(areas)
+
+    # return the best box
+    x1 = max_x[best_idx]
+    x2 = min_x[best_idx]
+    y1 = max_y[best_idx]
+    y2 = min_y[best_idx]
+    r = rotations[best_idx]
+
+    # rescale box along its smallest width
+    cx = (x1 + x2) / 2.0
+    cy = (y1 + y2) / 2.0
+    dx = abs(x1 - x2)
+    dy = abs(y1 - y2)
+    if (dx < dy):
+        x1 = cx - scale * (cx - x1)
+        x2 = cx + scale * (x2 - cx)
+    else:
+        y1 = cy - scale * (cy - y1)
+        y2 = cy + scale * (y2 - cy)
+
+    rval = np.zeros((4, 2))
+    rval[0] = np.dot([x1, y2], r)
+    rval[1] = np.dot([x2, y2], r)
+    rval[2] = np.dot([x2, y1], r)
+    rval[3] = np.dot([x1, y1], r)
+
+    return rval.tolist()
+
+# helper to find rectangles that are small
+def small_rect(stroke, min_size):
+    log("small rect: " + str(stroke))
+    if (len(stroke) != 5):
+        # skip cuts that are no rectangles
+        return False
+    log("distance from " + str(stroke))
+
+    # check if any of the cuts is smaller the minimum size
+    for p1 in stroke:
+        for p2 in stroke:
+            if p1 != p2:
+                dist = distance(p1, p2)
+                log("dist["+str(p1)+", "+str(p2)+"] = "+str(dist))
+                if (dist < min_size):
+                    return True
+    # not a small rect
+    return False
+
+# find minimum distance between two sets of points
+def min_stroke_distance(s1, s2):
+    min_dist = float("inf")
+    for p1 in s1:
+        for p2 in s2:
+            min_dist = min(min_dist, distance(p1, p2))
+    return min_dist
+
+# calculate the area of a given polygon
+def polygon_area(corners):
+    n = len(corners) # of corners
+    if corners[0] != corners[n-1]:
+        print("ERROR: polygon is not closed. aborting")
+        exit(0)
+
+    area = 0.0
+    for i in range(n):
+        j = (i + 1) % n
+        area += corners[i][0] * corners[j][1]
+        area -= corners[j][0] * corners[i][1]
+    area = abs(area) / 2.0
+    return area
+
+# fetch a list of all small rects
+def fix_small_geometry(strokes, min_size, min_dist):
+    small_rects = []
+    processed_strokes  = []
+
+    # sort into small and normal cuts
+    for s in strokes:
+        if not small_rect(s, min_size):
+            # not a small rect, keep it
+            processed_strokes.append(s)
+        else:
+            # small rect, add to small list
+            log("got small rect " + str(s))
+            small_rects.append(s)
+
+    # small rects list is now searched for rects that are close together
+    log("trying to merge close rects")
+    joined_rects = []
+    for s1 in small_rects:
+       joined = False
+       index = 0
+       for (index, (area_s2, s2)) in enumerate(joined_rects):
+             dist = min_stroke_distance(s1, s2)
+             log("distance: " + str(dist) + " (min=" + str(min_dist)+ ")")
+             if dist < min_dist:
+                 # both strokes are close to each other, join into one stroke set
+                 if not joined:
+                     # new join
+                     bbox = minimum_bounding_rectangle(s1 + s2)
+                     # keep track of area used
+                     joined_rects[index][0] = area_s2 + polygon_area(s1)
+                     # replace current stroke with new bounding box and close polygon
+                     joined_rects[index][1] = bbox + [bbox[0]]
+                 else:
+                     # this has been joined to something else before, make sure to
+                     # append this to the previous join:
+                     bbox = minimum_bounding_rectangle(s2 + joined_rects[joined_to][1])
+                     # keep track of area used
+                     joined_rects[joined_to][0] = area_s2 + joined_rects[joined_to][0]
+                     # replace current stroke with new bounding box and close polygon
+                     joined_rects[joined_to][1] = bbox + [bbox[0]]
+
+                 # mark rect as joined
+                 joined = True
+                 joined_to = index
+
+       if not joined:
+           log("adding new polygon to list: " + str(s1))
+           area = polygon_area(s1)
+           joined_rects.append([area, s1])
+
+    # merging might have produced subsets that are not merged yet
+    # test if all small rects are merged
+    for i,s in enumerate(joined_rects):
+        if small_rect(s[1], min_size):
+            # small rect, add to small list
+            log("WARNING: still got a small rect at " + str(i) + " = " +  str(s))
+
+    # shrink joined rects to accomodate for joining 
+    smallrect_strokes = []
+    for r in joined_rects:
+        area_before = r[0]
+        points = r[1]
+        area_now = polygon_area(points)
+        scale = area_before / area_now
+        log("scale " + str(scale))
+
+        # fetch a new bounding box that is scaled along its shorter side
+        bbox = minimum_bounding_rectangle(points, scale = scale)
+
+        # make sure to close polygon
+        smallrect_strokes.append(bbox + [bbox[0]])         
+
+    
+    if (DEBUG_SVG):
+        import svgwriter
+        svg = svgwriter.svgwriter("_tmp_gerber.svg")
+        svg.draw_polygon(smallrect_strokes, 'blue')
+        svg.draw_polygon(processed_strokes, 'black')
+        svg.draw_polygon(small_rects, 'red')
+        svg.finish()
+
+    return smallrect_strokes + processed_strokes 
+
diff --git a/svgwriter.py b/svgwriter.py
new file mode 100644
index 0000000..b1f14e4
--- /dev/null
+++ b/svgwriter.py
@@ -0,0 +1,20 @@
+# dump strokes to an svg
+import svgwrite
+from svgwrite import cm, mm   
+
+class svgwriter:
+    def __init__(self, filename):
+        self.dwg = svgwrite.Drawing(filename, profile='tiny')
+
+    def draw_polygon(self, strokes, color):
+        for s in strokes:
+            points = []
+            for p in s:
+                # create polygon list and convert user units to be in inch (*90)
+                points.append((p[0] * 90, p[1] * 90))
+            
+            poly = self.dwg.polygon(points=points, fill='none', stroke=color, stroke_width="0.01mm")
+            self.dwg.add(poly)
+
+    def finish(self):
+        self.dwg.save()