Additive manufacturing systems 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 for investment casting applications in jewelry, medical, dental and industrial sectors. The company’s technology creates models that are used to cast high-precision metal parts.
Solidscape is widely recognized as a leader in casting applications that require high precision, ultra-fine detailing and a smooth surface finish. The Company had revenues of $13.4 million and EBITDA of approximately $4.3 million for calendar year 2010.
“Solidscape is a strong, profitable company with an excellent reputation in the markets it serves,” said Scott Crump, CEO of Stratasys. “We believe there is a significant market opportunity to grow its business in the underpenetrated jewelry market and the relatively underdeveloped medical, dental and industrial markets. Solidscape’s 3D printers are used in the manufacturing process, which is consistent with our strategy to develop new markets for direct digital manufacturing applications.”
“Solidscape is a strong, profitable company with an excellent reputation in the markets it serves,” said Scott Crump, CEO of Stratasys. “We believe there is a significant market opportunity to grow its business in the underpenetrated jewelry market and the relatively underdeveloped medical, dental and industrial markets. Solidscape’s 3D printers are used in the manufacturing process, which is consistent with our strategy to develop new markets for direct digital manufacturing applications.”Stratasys will support Solidscape’s product development to develop systems targeting new applications. Solidscape will operate as a wholly owned subsidiary of Stratasys from its headquarters in New Hampshire. Solidscape’s leadership and management will remain within the company. Stratasys expects the acquisition of Solidscape to add approximately $0.04 per share to earnings in 2011.
“This agreement represents the merger of two established leaders in additive manufacturing,” said Michael Varanka, President of Solidscape. “We believe Stratasys and Solidscape have valuable synergies and the two companies will form a good partnership.”