Seeking Alpha

Stratasys significantly expands services ops via acquisitions

  • Stratasys (SSYS -0.3%) is buying Solid Concepts, the biggest additive manufacturing service bureau in North America, for $295M in cash ($172M up-front). The company is also acquiring Harvest Technologies, an additive manufacturing services firm with 80 employees, for an undisclosed sum.
  • Stratasys notes Solid Concepts is already a partner for the company's RedEye printing service business. The company has six U.S. facilities and 450 employees, and produced 2013 revenue of $65M.
  • The deals are expected to be accretive to Stratasys' EPS within the first 12 months of closing. Rival 3D Systems has already bought a number of 3D printing services firms.
  • Stratasys' services revenue rose 96% Y/Y in 2013 to $69.6M, and equaled 14% of total revenue.
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Comments (1)
  • Esekla
    , contributor
    Comments (3677) | Send Message
     
    This seems to validate the PSC approach that I've highlighted ExOne for having all along. Ironic that XONE stock is currently getting beaten up for putting resources into the same strategy.
    2 Apr 2014, 02:27 PM Reply Like
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