Will 3D Systems Be Acquired by IBM? DDD Stock Jumps 6%

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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).

3D Systems Inside 3D Printing Chicago

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.

Read: What is next for 3D printing giant 3D Systems?

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.

Related: Watch our video interview with 3D Systems CEO

Avi Reichental Keynote Inside 3D Printing Chicago

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?

Amazon also has entered the 3D printing market with the launch of a 3D Printing category on Amazon.com. eBay has also entered with a mobile 3D printing strategy.

Time will tell if the IBM rumor is true, and if so, IBM could be the company to usher in the next technology revolution.

Related: IBM Sees Exponential Growth of 3D Printing Industry

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One Response to Will 3D Systems Be Acquired by IBM? DDD Stock Jumps 6%

  1. Anthony says:

    Honestly, I’d be curious to see how the 3D printing industry looks in 10 years. I’m not sure who will still be in the game, but I got a feeling that we are going to see more companies starting to sell digital content, instead of giving it away. IBM printers will probably use proprietary filament too

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