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Major 3D Printing Acquisition: Stratasys to Acquire MakerBot
June 20, 2013

Major 3D Printing Acquisition: Stratasys to Acquire MakerBot

By Ed Silverstein , TMCnet Contributor

Stratasys (News - Alert), a key company in the 3D printing (additive manufacturing) sector, is expected to acquire MakerBot, which itself is well-known in desktop 3D printing.


The acquisition is expected to lead to more businesses and individual users getting involved in 3D printing.

Under the deal (estimated at $403 million or more), MakerBot will keep its own identity and products. Bre Pettis, CEO and co-founder of the Brooklyn, NY-based MakerBot, will continue in his management role.

The parties have signed a definitive merger agreement that will turn the privately held MakerBot into a subsidiary of Stratasys. The acquisition is likely to be completed during Q3 of 2013, pending regulatory approvals.


Image via Shutterstock

In this stock-for-stock transaction, Stratasys will issue approximately 4.76 million shares in exchange for all of the outstanding stock of MakerBot.  The deal has an initial value of $403 million, and MakerBot stakeholders also may get performance-based earn-outs which have an initial value of up to $201 million, to be given in Stratasys’ shares or cash.

Started in 2009, MakerBot “has built the largest installed base of 3D printers in the category by making 3D printers highly accessible,” the companies said in a statement.

Specifically, MakerBot has sold more than 22,000 3D printers. For example, in the last nine months MakerBot sold about 11,000 Replicator 2 Desktop 3D printers.

During Q1 of 2013, MakerBot saw $11.5 million in total revenue, compared to $15.7 million for all of 2012.

The acquisition could lead to quicker adoption of 3D printing by many sectors, as well as more use of the technology in other applications.

“Desktop 3D printers are becoming a mainstream tool across many market segments,” the companies said in the statement.

MakerBot’s products are increasingly used by universities, architects, designers, engineers, entrepreneurs, manufacturers and individuals as well.

“MakerBot’s 3D printers are rapidly being adopted by CAD-trained designers and engineers,” David Reis, Stratasys CEO, added in the statement. “Bre Pettis and his team at MakerBot have built the strongest brand in the desktop 3D printer category by delivering an exceptional user experience. MakerBot has impressive products, and we believe that the company’s strategy of making 3D printing accessible and affordable will continue to drive adoption.”

As MakerBot grew as a startup, in 2011 it was able to raise $10 million in a round led by the Foundry Group. The company’s investors include Bezos Expeditions, an investment firm linked to Jeff Bezos, the Amazon.com (News - Alert) CEO, The New York Times reported.

Between 35,000 to 40,000 desktop 3D printers were sold in 2012, the two companies estimated, and the total will likely double during 2013.

Overall, the 3D printing sector is seen as becoming increasingly important and poised for clear growth. As an example of the health of the sector, The Washington Post noted that Amazon and Staples (News - Alert) are selling 3D printers.

And who is Stratasys? It was formed last year when Stratasys Inc. and Objet Ltd merged. It makes 3D printers and materials that create prototypes and finished goods directly from 3D CAD files or other 3D content.

The company has over 1,000 employees and holds over 500 patents or pending patents worldwide.

The company also claims that its “range of 120 3D printing materials is the widest in the industry and includes over 100 proprietary PolyJet photopolymer materials and 10 proprietary FDM-based thermoplastic materials.” The company has its headquarters in Minneapolis, Minn. and Rehovot, Israel. 




Edited by Rich Steeves





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