Stratasys to acquire Origin

Stratasys has acquired a 3D-printing start-up company, Origin, to expand its 3D photopolymer manufacturing capabilities in industries such as dental, medical, tooling, and select industrial, defense, and consumer goods segments.

Stratasys has acquired Origin with its P3 photopolymer printing technology and Origin One 3D printer.

Origin has developed a proprietary approach to photopolymer printing, which it calls Programmable PhotoPolymerization, or P3. This essentially builds on the principles behind Digital Light Processin, curing liquid photopolymer resin with light. This was the basis behind the Origin One 3D printer, said to be capable of building parts with industry-leading accuracy, consistency, size and detail, while using a wide range of commercial-grade, durable resins.

Christopher Prucha, the CEO and co-founder of Origin, commented: “We founded Origin to create a whole new additive manufacturing platform that enables mass production of end-use parts with incredible accuracy, consistency, and throughput along with a wide range of available materials.” He added: “Stratasys is the best company for us to join to achieve our vision, giving us an unparalleled opportunity to significantly expand market reach and enable us to bring our P3 technology to a larger audience.”

It’s been used in a number of applications, including producing hundreds of thousands of clinically validated nasopharyngeal swabs, thousands of PPE face shields, and ventilator splitters for hospitals. Amongst its customers is the shoe manufacturer Ecco. Jakob Møller Hansen, vice president of Res earch & Development for Ecco, commented: “We’re pleased to continue our cooperation with the Origin team as an exclusive partner within the area of the footwear industry categorized as Direct Injection Production, now also by leveraging Stratasys’ global infrastructure.”

The deal is worth $100 million and involves Stratasys paying $60 million, though $6 million of this is dependent on the founders staying with the company for the next three years. In addition, Stratasys will pay out a further $40 million that is subject to performance-based earnouts over those 3 years. Stratasys will finance this with a combination of stock of approximately $45 million and cash of approximately $55 million at closing and throughout the earnout period. Approximately $32 million of the cash expenditure will be at closing. 

Naturally the deal is still subject to the usual regulatory checks but is expected to close early 2021. Stratasys has said that it expects the acquisition will slightly dilute its non-GAAP earnings per share in 2021, but will help the company expand, leading to an increase in the non-GAAP earnings per share by 2023. 

Stratasys CEO Yoav Zeif, explained the logic behind this deal, saying: “We believe Origin’s software-driven Origin One system is the best in the industry by combining high throughput with incredible accuracy. When combined with Origin’s extensive materials ecosystem and our industry-leading go-to-market capabilities, we believe we will be able to capture a wide range of in-demand production applications on a global scale. Together with our intended entry into powder bed fusion technology, the acquisition of Origin reflects another step in fulfilling our objective to lead in polymer additive manufacturing by offering comprehensive, best-in-class technologies and solutions to create a fully digital additive value chain, designed for Industry 4.0 integration.”

The Origin team will join Stratasys and further develop this technology with a full global launch through Stratasys planned for mid-2021. You can find further details from stratasys.com.


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