Leading 3-D printer firms to merge in $403M deal (Update)

Jun 19, 2013

Stratasys, a leading maker of 3-D printers, is buying another 3-D printer manufacturer, MakerBot, for $403 million in stock.

Stratasys Ltd. said Wednesday the acquisition will enable it to offer affordable desktop 3-D printers. MakerBot, whose machines are priced around $2,000 to $3,000 and are aimed at the "prosumer" market, sells direct to buyers over its website. In contrast, Stratasys makes machines priced $10,000 to $600,000 mostly to industrial clients through resellers.

MakerBot's owners will receive 4.76 million newly issued Stratasys shares and are eligible for another 2.38 million through the end of 2014 if certain performance targets are met. That could raise the purchase price by about $201 million based on Wednesday's closing stock price.

The merger is expected to be completed in the third quarter of this year.

Stratasys is based in Eden Prairie, Minnesota, and Rehovot, Israel. Its shares rose $2.40, or 2.8 percent, to $87 in after-hours trading. New York-based MakerBot is privately held.

MakerBot will keep its name, products and strategy as a unit of Stratasys. Stratasys said the purchase will add to its growth, but will reduce net income slightly in 2013 and add to it in 2014.

MakerBot also runs the website Thingiverse.com, which offers a large collection of downloadable digital designs for physical objects.

Analysts of the 3-D printing market have said the industry has the potential to revolutionize manufacturing, since the printers are able to make everything from chocolate molds and mouth braces to gun parts by laying down layer upon layer of plastic, metal or other materials.

The market is expected to double by 2016 from a base of about $3 billion this year, said Stratasys CEO David Reis. Both companies are posting strong revenue gains that should outpace the overall industry, he said.

"The potential in this market is huge," Reis said.

"Even though both of our companies have had a lot of aggressive growth, we're still at the beginning," said MakerBot CEO Bre Pettis.

Both companies plan to hire more employees later this year to boost their expansions, Reis said.

In the first quarter through March, Stratasys' revenue more than doubled to $97.2 million from $45 million a year ago. MakerBot had first-quarter revenue of $11.5 million, compared to $15.7 million for all of last year.

Stratasys bought Israeli competitor Objet in December, and said it has sold about 31,000 printers worldwide. It said MakerBot has sold about 22,000 desktop units since 2009.

Explore further: MasterCard, Zwipe announce fingerprint-sensor card

5 /5 (6 votes)
add to favorites email to friend print save as pdf

Related Stories

Facebook jumps on biggest lock-up expiration day

Nov 14, 2012

(AP)—Facebook's stock is up more than 7 percent despite expectations that it would fall because more than 850 million additional shares in the company are being freed up for sale.

Recommended for you

MasterCard, Zwipe announce fingerprint-sensor card

Oct 18, 2014

On Friday, MasterCard and Oslo, Norway-based Zwipe announced the launch of a contactless payment card featuring an integrated fingerprint sensor. Say goodbye to PINs. This card, they said, is the world's ...

Apple starts iPhone 6 sales in key China market

Oct 17, 2014

Apple began selling its latest iPhone in China Friday, nearly a month after other major territories due to a licence delay by regulators, but it faces a tough battle with rivals led by Samsung in the crucial ...

Microsoft CEO launches diversity training effort

Oct 17, 2014

(AP)—Microsoft CEO Satya Nadella has again apologized to employees and announced in a company-wide memo that all workers will receive expanded training on how to foster an inclusive culture as he works to repair damage ...

Arguments made in ex-dictator's suit against game

Oct 17, 2014

(AP)—A judge has heard arguments from lawyer and former New York City Mayor Rudy Giuliani calling for the dismissal of a lawsuit filed against video game giant Activision by former Panamanian dictator Manuel Noriega.

User comments : 1

Adjust slider to filter visible comments by rank

Display comments: newest first

NikFromNYC
1 / 5 (1) Jun 20, 2013
Apple bought Steve Jobs back for $500M, delightfully, but this 3D printing bubble is absurd. These NYC hipsters along with the Boing Boing blog hyped these robotic glue guns as representing a revolution minus any real innovations beyond crappy plastic.