Will 3D Systems Be Acquired by IBM? DDD Stock Jumps 6%
3D Systems (NYSE:DDD) has had quite a run as a public company this year. With a stock price up nearly 100% year to date, the company now has a market capitalization over $7 billion.
And today was a big day with a 6% gain thanks to rumors that IBM was looking to buy 3D Systems for a premium at $90 per share (DDD’s current price is $70 as of this writing).
Why Would IBM Buy 3D Systems?
First of all, 3D Systems is the leader in the 3D printing market. The company boasts the largest market capitalization and has proven it can expand its scope through acquisition and R&D.
The company has also expanded into the hot desktop 3D printing category.
3D Systems expects to generate around $500 million of revenue this year, with the majority of sales in the industrial sector. But it has also expanded aggressively into the consumer business with the Cube and CubeX 3D printers, and expects prices of desktop 3D printers to come down from $1300 to below $500 over time.
A Defensive Move?
Perhaps IBM is concerned about the entry of other computing giants. HP CEO Meg Whitman said recently, “We want to lead this [3D printing] business. HP Labs is looking at it.” With over $13 billion in cash, would HP’s first move be an acquisition?
Time will tell if the IBM rumor is true, and if so, IBM could be the company to usher in the next technology revolution.