3D Systems to Raise $100 Million in Common Stock for Acquisitions
3D printer manufacturer 3D Systems (NYSE:DDD) announced that it will raise $100 million by selling common stock.
[The company] intends to use the net proceeds from the offering to finance future acquisitions of other entities or their assets and for working capital and general corporate purposes.
The market did not respond well to this announcement, and shares dropped 6% in after hours trading. Their market capitalization this morning is $1.57 billion.
3D Systems has recently been on an acquisition bender:
- Bespoke Innovations in May for 3D printed personalized prosthetics
- FreshFiber in May 2012 for 3D printed electronics accessories
- My Robot Nation in April 2012 for creative solutions to support 3D printing community Cubify for kids and adults
- Paramount Industries in April 2012 to advance aerospace and medical device 3D printing
3D Systems also posted a healthy Q1 with record revenue and printer units sold. We reported how 3D printing stocks are hot, up 180% over 6 months and beating out the stock market indices.
Based on this announcement, it appears that more consolidation is on the roadmap for the 3D printing industry, and that 3D Systems is looking to take an early lead as juggernaut in the market.
if only Abe (CEO 3D Systems) paid attention to the the products he currently markets,instead of concertrating on expanding the size of 3D,at the expence of the current stockholders and owners of 3D equipment,we would all be better off.
Quit looking for Stratasys in your rear view mirror,they passed you long ago.
@jack are you suggesting that 3D Systems should not be bringing new products to market, but instead focus on today’s product line?
[...] companies relating to the industry like My Robot Nation and FreshFiber. And in June, the company issued $100 million in common stock, proceeds from which will be used for further acquisitions, showing that the company is committed [...]
We are evaluating the use of 3D printers for producing machince parts in the steel mill and machinery business. This is just the beginning. 3D printing is not known in most cirlces around the world. When the industry gets there recognition, watch out!!