Seeking Alpha

3D Systems acquires Xerox R&D group for $32.5M

  • 3D Systems (DDD +0.2%) is acquiring a Xerox (XRX -0.5%) R&D group focused on solid ink engineering and product design for $32.5M in cash. The group is based out of Wilsonville, OR, and has 100+ engineers/contractors. (PR)
  • 3D calls the deal an expansion of a partnership with Xerox that already gave birth to 3D's high-end ProJet printers. Xerox, the sole supplier of solid ink printing solutions, asserts the technology delivers better color print quality and produces far less waste than traditional color laser printing.
  • 3D has already been paying attention to color quality. Two weeks ago, the company launched the ProJet 4500, which it calls the only "continuous-tone, full-color plastic 3D printer available on the market."
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Comments (8)
  • Esekla
    , contributor
    Comments (3740) | Send Message
     
    They've been doing a lot of acquisitions. It's worrying that Goodwill has quadrupled in the last couple of quarters. I prefer companies that are focused on the industrial sector:

     

    http://seekingalpha.co...
    18 Dec 2013, 10:14 AM Reply Like
  • StepUp
    , contributor
    Comments (506) | Send Message
     
    Yes we know. :) Do you have a DDD short to go with your XONE long?
    18 Dec 2013, 10:26 AM Reply Like
  • Esekla
    , contributor
    Comments (3740) | Send Message
     
    No, I have no position in DDD. I'm just looking for the market to start differentiating between companies with very disparate approaches.
    18 Dec 2013, 10:33 AM Reply Like
  • Ralph208
    , contributor
    Comments (64) | Send Message
     
    I wonder if Xerox has a small interest in DDD?
    Anybody know?
    RAS
    18 Dec 2013, 11:18 AM Reply Like
  • Lonnie Starr
    , contributor
    Comments (318) | Send Message
     
    The company seems to understand that color is an issue with users and color is no easy matter to deal with as there are many trademarked and copyrighted color systems like Pantone for instance. So, it makes sense to hire people already trained and skilled in color matters. Because the commercial side of the business is very concerned about their own trademarked colors. Getting them right in finished products will aid in market penetration.

     

    The entire field of 3d printing is vast, so it makes sense to not try to "reinvent the wheel" so to speak and acquire the expertise needed from where it already exists.

     

    Sure M&A with it's attendant goodwill would be of concern, if this industry wasn't so new and diverse. But, on the bright side, these acquisitions can mean spin offs later on. Right now it's much to early to tell, but remember, we're on the outside looking in. We are not privy to the day to day problems and the discussions about how best to address customer desires. Will mistakes be made? For sure they will, but these things have to be tried to learn, it's a process that must be engaged with all the risks it entails. Otherwise you wake up one morning to find that others, who have accepted those risks, are out there eating your lunch.
    18 Dec 2013, 11:38 AM Reply Like
  • jpmj4847
    , contributor
    Comments (546) | Send Message
     
    Yes Lonnie I agree, DDD is taking nothing for granted. I'm long and remaining. jpmj4847
    18 Dec 2013, 03:06 PM Reply Like
  • RedS10
    , contributor
    Comments (67) | Send Message
     
    Cash flow can make any goodwill-pig look like a damsel. Pro's know that goodwill may indicate poor management, but it's all in the profitability & cash flow.
    18 Dec 2013, 09:28 PM Reply Like
  • Lonnie Starr
    , contributor
    Comments (318) | Send Message
     
    I just checked "Extreme Value Stocks" website and noted that the short interest has fallen to some 16 million shares, down from the 27M we used to carry. With the stock trading in this sort of range, while the shorts are closing their positions, my guess would be, something I've seen happen before (Tai Pan anyone?) An institutional shorter, caught in a bad position will strike a deal to have the company let them out. Such a deal might be for them to provide some kind of valuable benefit to the company, if the company will help them close their position by arranging for them to get the stock they need to cover, at some agreed upon price range.

     

    Not saying that this is what's happening but, it is something to consider. Individual shorters, if they're alert, will close their positions while the deal is in play, because once it ends they'll have no more cover.

     

    Usually, by the time the short selling institution comes calling to make some deal, they're on their last legs or so close to it there's little difference. But, as usual we shareholders will never know of it, but keep an eye peeled for some usually sweet artifact appearing on the companies table as if by magic. LOL. I think the shorters are done.

     

    That aside, I see that the usual suspects who have been our nattering nabobs of negativity, have either left the field entirely or turned. Could be they're not getting paid? So much to speculate about, LOL!!!
    19 Dec 2013, 11:11 AM Reply Like
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