April 2, 2014
3D printer company Stratasys on Wednesday acquired Solid Concepts and Harvest Technologies, two privately-held companies.
Under the terms of the definitive agreement with Solid Concepts, Stratasys will acquire Solid Concepts for total consideration of up to $295 million, including a payment on closing of $172 million, deferred payments of $60 million and up to $63 million in retention-related payments. Stratasys will acquire Harvest Technologies for an undisclosed amount, including retention-related payments, payable in cash, shares or a combination thereof.
Valencia, California based Solid Concepts, founded in 1991, is the largest independent additive manufacturing service bureau in North America and a fast-growing partner to RedEye, Stratasys' existing digital manufacturing service business. Solid Concepts focused on vertical manufacturing including medical and aerospace and has generated revenues of approximately $65 million in 2013. It has six U.S. facilities staffed by approximately 450 employees.
Harvest Technologies, based in Belton, Texas, is another additive manufacturing service bureau specialized in parts production, as well as materials and systems knowhow. Established in 1995, the company has approximately 80 employees.
Stratasys' plan is to combine Solid Concepts and Harvest Technologies with RedEye to establish one additive manufacturing services business unit. Joe Allison, President of Solid Concepts, will join the Stratasys management team and lead the combined parts business.
Both Solid Concepts and Harvest Technologies have strong financial track records. The transactions are expected to be accretive to Stratasys' non-GAAP earnings per share within the first 12 months after closing.
Posted in 3D Printing Company
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Looks like Stratasys will start dominating the service bureau market soon. I wonder if one reason for this is a price drop in the future which will lead to lower profits which they will make up for in service. Exciting times indeed.
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