3D Systems: Pride Comes Before The Fall
Alex Cho • 61 Comments
Alex Cho • 61 Comments
Tue, Sep. 6, 6:55 PM
- GE's $1.4B purchase of a pair of 3D-printer companies sent stocks in the group soaring in today's trade, with 3D Systems (NYSE:DDD) closing +5.5%, Stratasys (NASDAQ:SSYS) +3.7%, Voxeljet (NYSE:VJET) +4.6% and ExOne (NASDAQ:XONE) +5.8%.
- But GE closed 0.7% lower, as analysts say that while 3D printing is promising, GE’s acquisitions are a “net negative” because there are relatively few short-term benefits.
- “This seems like a relatively outsized and expensive bet, with no near-term return, and an incremental opportunity cost when considering the ongoing debate around what we view as finite balance sheet capacity,” says J.P. Morgan's Steve Tusa.
- Cowen analyst Gautam Khanna takes a longer view, saying that “while the deals appear pricey, they help position GE to lead, implement and control additive manufacturing processes that will become important cost-reduction levers long term in Aviation and elsewhere."
- As for the 3-D companies, Citigroup’s Kenneth Wong says that while the GE deal does not present any immediate competition for them, it does not necessarily suggest any buyout implications for the companies since GE is focusing on metal applications.
May 28, 2015, 11:09 AM
- 3D Systems (DDD +3.4%) has spiked higher on an unconfirmed rumor it has hired Goldman to advise on a GE bid in the $30-$34/share range.
- Many such rumors wind up eventually being shot down. And a huge short interest arguably makes 3D particularly susceptible to moving on one: 37.2M shares (35% of the float) were shorted as of April 30.
Apr. 6, 2015, 10:44 AM
- Acquisition-hungry 3D Systems (DDD +1.6%) has bought Easyway, a leading Chinese 3D printing reseller and service bureau. Terms are undisclosed.
- 3D notes Easyway has operations in 5 major Chinese cities, as well as relationships with Volkswagen, Nissan, Philips, Black & Decker, Panasonic, and Honeywell. Easyway founder May Zhou has been named the head of a new 3D Systems China unit.
- 3D has already bought several 3D printing service bureaus; Belgian metal printing service bureau LayerWise was acquired last summer. Shares are higher following today's announcement.
- Last week: 3D Systems forms 3D-printed prosthetics partnership
Jan. 5, 2015, 2:19 PM
- Continuing its heady acquisition spree, 3D Systems (NYSE:DDD) has acquired botObjects, a U.K.-based startup that has developed what it claims is "the first full-color 3D desktop printer for home and business." Terms are undisclosed, but 3D expects the deal to be accretive in 2015.
- 3D has added botObjects' printer to its Cube consumer/enthusiast printer line - it's now known as the CubePro C - and plans to sell it at $4,990. botObjects asserts its printer is differentiated through a "proprietary 5-color PLA cartridge system" that works much like normal inkjet printing systems, as well as a dual-extruder head and proprietary self-calibration software.
- The purchase is aimed at Stratasys (SSYS -4.9%) MakerBot unit, whose Replicator printer line has (from all indications) handily outperformed 3D's Cube line in the consumer/enthusiast space. MakerBot's 5th-gen Replicator is priced at $2,899; the Replicator Mini goes for $1,375, and the larger Replicator Z18 for $6,499. MakerBot's sales were up 80% Y/Y in Q3.
- As one would expect, the CubePro C will be shown off at CES (runs from Tuesday-Friday). Also being shown off: A new stylus for 3D sculpting/design and gaming that supports haptic feedback, and related virtual sculpting software (Cubify Sculpt). The package goes for $599.
- 3D and Stratasys are selling off hard on a rough day for equities.
Nov. 24, 2014, 8:11 AM
- 3D Systems (NYSE:DDD) agrees to acquire Israel's Cimatron (NASDAQ:CIMT) for ~$97M to strengthen its position in the 3D design and manufacturing business.
- CIMT provides CAD and CAM software products and solutions for 3D manufacturing; DDD will pay $8.97/share, a 47.5% premium to CIMT's Nasdaq closing price on Friday.
- CIMT +42.7% premarket, DDD +0.5%.
Sep. 3, 2014, 9:22 AM
- 3D Systems (NYSE:DDD) has bought LayerWise, a Belgian provider of 3D-printed metal parts for aerospace, high-precision equipment, and medical/dental customers. Terms are undisclosed.
- LayerWise's services are offered via proprietary metal printers - 3D claims they "deliver relative part density of up to 99.98% and match conventional metals' mechanical properties, at substantial unit weight reduction." The deal is expected to be "immediately accretive to [3D's] cash generation."
- This summer has already seen acquisition-hungry 3D buy industrial printing service bureau Laser Reproductions and surgical simulator firm Simbionix. Last year, the company bought French metal printer maker Phenix Systems.
- Shares +1% premarket.
Aug. 6, 2014, 9:57 AM
- 3D Systems (DDD +3.3%) has acquired Laser Reproductions, an Ohio-based 3D printing service bureau that caters to industrial design firms and OEMs (among others).
- Terms are undisclosed. The deal is expected to be accretive within the first 12 months.
- 3D will add Laser Reproductions' offerings, which include prototyping, manufacturing, and stereolithography, to its Quickparts service bureau arm (a higher-margin business). The company's total services revenue rose 38% Y/Y in Q2, soundly outpacing product revenue growth of 20%.
- Acquisition-loving 3D bought Brazilian service bureau Robtec in April. More recently, it bought surgical simulator maker Simbionix for $120M.
Jul. 30, 2014, 5:46 PM
- Ahead of tomorrow morning's Q2 report, 3D Systems (NYSE:DDD) announces it's buying Simbionix, maker of a line of simulators for surgical planning/training, for $120M in cash. The deal is expected to be immediately accretive to EPS.
- Simbionix offers 16 simulation platforms that support 60+ interventional procedures. Though its hardware isn't used to print anything, 3D asserts the purchase expands its "healthcare capabilities from the training room to the operating room."
- Acquisition-hungry 3D is only 4 months removed from buying Medical Modeling, a provider of imaging/modeling products and 3D-printed implants for surgeons. The company's healthcare revenue rose 53% Y/Y in Q1 to $21.7M (15% of total revenue).
Apr. 16, 2014, 9:35 AM
- 3D Systems (DDD) is acquiring Robtec, a Sao Paulo-based firm declared to be the largest additive manufacturing service bureau and 3D printer/scanner distributor in Latin America.
- 3D will initially buy 70% of Robtec, and the remainder of its shares in 5 years. The deal's price tag is undisclosed; 3D says it will be accretive to EPS within 12 months of closing.
- Robtec, which operates in Brazil, Mexico, Argentina, Chile, and Uruguay, will support 3D's Quickparts custom manufacturing/prototyping service. 3D has already acquired a string of service bureaus over the last couple of years. Services accounted for 28% of the company's Q4 revenue.
Feb. 19, 2014, 2:40 PM
- Acquisition-hungry 3D Systems (DDD +0.2%) has purchased Digital PlaySpace (DPS), creator of a "digital play platform" that combines 3D-printed toys and dollhouse items with design tools and social sharing features for kids. Terms are undisclosed.
- DPS' platform relies on a site (DigitalDollhouse.com) and a Facebook app. Objects designed using the platform can be produced using one of 3D's consumer/enthusiast-focused Cube printers, or through its Cubify online printing service.
- The acquisition follows a deal with Hasbro to create "play experiences powered by 3D printing," and the purchase of 3D toy modeling firm Gentle Giant Studios.
Jan. 3, 2014, 11:37 AM
- Another month, another 3D Systems (DDD +1.2%) acquisition. The target this time is Gentle Giant Studios, a provider of 3D modeling services for the entertainment and toy industries. Terms are undisclosed. (PR)
- Gentle Giant, which is located a stone's throw away from Hollywood, uses 3D scanning/modeling tools to create licensed toys and collectibles for brands and franchises such as Marvel, Disney, Harry Potter, and Star Wars.
- 3D says it will use Gentle Giant's technology and content library to "further the reach of 3D scanning, modeling and printing for entertainment, toys, collectibles, action figures in conjunction with numerous blockbuster films and evergreen licensed properties."
- Other recent acquisitions: Xerox R&D unit, Village Plastics, The Sugar Lab
Dec. 18, 2013, 9:56 AM
- 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."
Dec. 13, 2013, 1:06 PM
- 3D Systems (DDD +0.7%) is acquiring Village Plastics, a maker of filaments for a variety of 3D printing materials. Terms are undisclosed. (PR)
- 3D says it will immediately integrate Village's materials and manufacturing tech to "accelerate its development of advanced filament-based materials" for its consumer/enthusiast-focused Cube and CubeX printers. Village Plastics could help the Cube line better compete against MakerBot's Replicator printer line.
- 3D has been buying companies early and often in recent years. Other 2013 acquisitions: The Sugar Lab, Phenix Systems, CRDM, Geomagic.
Nov. 5, 2013, 10:43 AM
- Rumors IBM is interested in buying 3D Systems (DDD +6.2%) for $90/share (a 28% premium to current levels) are helping the 3D printer vendor surge to new highs. Rivals Stratasys (SSYS +3.9% - also making new highs) and ExOne (XONE +5.5%) are also up strongly.
- Heavy short interests (I, II, III) are probably adding fuel to the fire.
Sep. 10, 2013, 9:18 AM
- 3D (DDD) has acquired The Sugar Lab, a 3D printing design firm focused on "printing customized, multi-dimensional, edible confections in real sugar." Terms are undisclosed; odds are the price tag isn't huge. (PR)
- 3D notes The Sugar Lab already leverages the company's Color Jet Printing tech to "print on a sugar bed using different flavored edible binders that meet all food safety requirements."
- The Sugar Lab's printing technique will be integrated with 3D's existing lineup of professional and consumer content-to-print platforms with a variety of production-quality applications as well as the ability to 3D print indulgences at home."
- 3D has been buying companies early and often, a strategy that has fueled some criticism. Other recent acquisitions: CRDM, Phenix Systems, TeamPlatform
Aug. 20, 2013, 4:27 PM
- CRDM provides prototyping and tooling services for automotive, aerospace, medical, and motorsports companies using 3D printers. Deal terms are undisclosed. (PR)
- 3D Systems (DDD) says CRDM's services will be added to its Quickparts Solutions custom parts/manufacturing services business.
- 3D has been willing to buy companies early and often, and a recent stock offering gave the company additional funds to go shopping with.
- The company has been looking to expand its European presence. A deal to acquire French 3D printer maker Phenix Systems was announced in June.
- Past 3D Systems acquisitions