3D Systems announced the acquisition of two of its sister companies, APP and APM.
The acquisitions are in line with our expectations and the company's strategy of complementing organic growth with acquisitions.
Our stance has been reaffirmed and we believe the company will continue to grow through expansions as well as organically.
3D Systems (NYSE:DDD) announced the acquisition of two sister companies - American precision Prototyping (APP) and American Precision Machining (APM) - both these companies operate in the rapid prototyping advanced manufacturing and product development services. The company did not disclose the details of the transaction. Both the companies will bring a combined experience of about 24 years in the field of rapid prototyping and product development and enhance 3D Systems' portfolio considerably.
Specifically, both these companies have expertise in the aerospace segment. Addition of these companies to 3D Systems' portfolio means the company has a stronger footprint in the aerospace segment of the industry. APP and APM have been providing 3-D printed or machine custom parts to Boeing (NYSE:BA), NASA, General Electric (NYSE:GE) and Qualcomm (NASDAQ:QCOM). APP was the customer of 3D Systems' 3-D printers and systems and this acquisition represents a kind of forward integration for the company - 3D Systems has acquired one of its customers and entered the retail segment.
These two acquisitions are in line with our expectations as we have said in the past that the company will continue to complement its organic growth with acquisitions. 3D Systems has followed this strategy over the last few years and the company has completed around 45 acquisitions over the last four years and spent over $520 million. These acquisitions have played a key role in strong revenue growth for the company and a number of these acquisitions are contributing towards the organic growth of the company. We expect 3D Systems to continue its strategy to complement organic growth with acquisitions and mergers - this strategy is allowing the company to expand into a number of areas and grow at an exceptional rate.
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