Stratasys grows through double acquisition

Stratasys, which makes 3D printing systems, has entered into definitive agreements to buy two privately held companies, Solid Concepts Inc. and Harvest Technologies.
Solid Concepts, which was founded in 1991, is the largest independent additive manufacturing service bureau in North America, generating revenues of approximately $65 million in 2013. It focusses in particular areas such as medical and aerospace. It already works with RedEye, Stratasys’ existing digital manufacturing service business. Harvest Technologies, based in Belton, Texas, is a specialty additive manufacturing service bureau established in 1995, and has experience in parts production, as well as materials and systems.
The transactions are expected to be completed early in the upcoming third quarter, subject to customary closing conditions, and are expected to be accretive to Stratasys’ Non-GAAP earnings per share within the first 12 months after closing. Under the terms of the definitive agreement with Solid Concepts, Stratasys will acquire the company for up to $295 million, including a payment on closing of $172 million (or, if settled in cash, part on closing and part six months after closing), deferred payments of $60 million and up to $63 million in retention-related payments. 
Once the deal does go through Solid Concepts and Harvest Technologies will be merged with RedEye to create a single large additive manufacturing services business unit. Joe Allison, President of Solid Concepts, will join the Stratasys management team and lead the combined parts business.

Leave a Reply

Your email address will not be published. Required fields are marked *