Additive manufacturing system maker Stratasys, (NASDAQ: SSYS), has acquired Solidscape, Inc. for $38 million plus certain purchase price adjustments.
New Hampshire-based Solidscape is a manufacturer of 3D printers serving investment casting applications in the jewelry, medical, dental and industrial markets. The company’s technology produces patterns that are used to cast highly precise metal parts.
Solidscape is widely recognized as a leader for casting applications that require high-precision, ultra-fine feature detail and a smooth surface finish. The company had revenues of $13.4 million and generated approximately $4.3 million in EBITDA for calendar year 2010.
“Solidscape is a strong, profitable company with an excellent reputation in the markets it serves,” said Stratasys CEO Scott Crump. “We believe there is a significant market opportunity to expand its business in the under-penetrated jewelry market and the relatively undeveloped medical, dental and industrial markets. Solidscape’s 3D printers are used in the manufacturing process, which is consistent with our strategy to pursue new markets for direct digital manufacturing applications.”
Stratasys will support Solidscape product development with the goal of producing systems that target new applications. Solidscape will operate from its base in New Hampshire as a wholly owned subsidiary of Stratasys. Solidscape leadership and management will stay with the company. Stratasys expects the acquisition of Solidscape will add approximately $0.04 per share to earnings in 2011.
“This agreement represents the joining of two well-established leaders in additive manufacturing,” says Solidscape President Michael Varanka. “We believe Stratasys and Solidscape have valuable synergies, and the two companies will make a good partnership.”