Tag Archives: M&A
Top 3D Printing Headlines Last Week: will.i.am and Britney, M&A, Staples, Holiday Gift Guide
A roundup of the top news On 3D Printing brought you from December 4 to December 9.
Tuesday, December 4
Wednesday, December 5
- Video: BBC Reports on the Growth of 3D Printing
- Review: Mixee Me Lets You Design and 3D Print Your Own Mini-Me
Thursday, December 6
- Make Magazine Publishes a Holiday Gift Guide for 3D Printing
- Video: A Look Inside Staples Easy Button Solution For 3D Printing
Friday, December 7
Sunday, December 9
Stratasys and Objet Complete Merger Forming $3 Billion Company
Completing one of the most significant mergers in 2012, Stratasys and Objet now form a market leader in 3D printing with a market capitalization of $3.0 billion.
Stratasys, Inc. (SSYS) and Objet Ltd. announced the completion of their merger, forming a leader in 3D printing and direct digital manufacturing. The combined company will trade on the NASDAQ stock exchange as Stratasys Ltd. (“Stratasys”) under the symbol SSYS beginning December 3, 2012. Based on the closing price of Stratasys, Inc. stock on November 30, 2012, the market capitalization of the new company will be approximately $3.0 billion.
Stratasys boasts an impressive portfolio of 3D printing and direct digital manufacturing solutions, with systems that produce parts with a wide range of capabilities and materials. The company will offer three leading technologies: FDM® for functional prototypes and production parts; inkjet-based PolyJet® for prototyping parts with high feature detail and fine surface finish; and Solidscape® Drop-on-Demand (“DoD”) thermoplastic ink-jetting technology for complex wax patterns for investment casting of finished parts. With more than 260 channel partners around the world, Stratasys can leverage the extensive geographic reach of its marketing and sales organization to serve customers and grow awareness of 3D printing for rapid prototyping and production. In addition, Stratasys will have a world-class R&D team focused on developing new consumables and systems.
David Reis, chief executive officer of Stratasys, stated, “We are excited to move forward as one company and deliver the benefits this combination creates for our shareholders, our customers and our employees. Stratasys is now uniquely positioned to offer a comprehensive portfolio of innovative products and technologies, and we have the scale, team and financial strength to achieve our goals. I look forward to working closely with the board of directors, our senior management team and all of our employees to ensure a seamless transition as we continue to deliver advanced solutions to our customers worldwide.”
“We are pleased to announce the successful completion of this merger,” said Scott Crump, full-time executive chairman of Stratasys. “With our breadth of products, commitment to innovation, and outstanding, service-focused team, we will be well positioned to address customer needs across the entire 3D design and manufacturing spectrum. The combined company has a deep well of talent and a strong board and management team to lead us successfully as we continue to pave a new way forward for the 3D printing industry.”
Transaction Information
Consistent with the terms of the transaction, which was announced on April 16, 2012, Stratasys, Inc. has merged with a subsidiary of Objet, each former Stratasys common share has been converted into the right to receive one newly issued ordinary share of Stratasys Ltd., and Objet has changed its name to Stratasys Ltd. Former Stratasys stockholders hold approximately 55 percent of the combined company’s common stock, and former Objet shareholders hold approximately 45 percent on a fully diluted basis using the treasury stock method. Stratasys is maintaining dual headquarters in Eden Prairie, Minnesota and Rehovot, Israel, and is incorporated in Israel.
Financial Benefits of the Transaction
The transaction is expected to create significant revenue synergies from increased sales, and to be accretive to non-GAAP earnings per share immediately. Beginning 18 months after closing, Stratasys expects to be generating between $7 and $8 million of annual net cost synergies and between $3 and $4 million in annual tax savings.
Leadership
David Reis, former chief executive officer of Objet, has assumed the role of chief executive officer; Erez Simha, former chief operations officer and chief financial officer of Objet, has assumed the role of chief operations officer (IL) and chief financial officer; Scott Crump, co-founder and former chief executive officer of Stratasys, Inc., has become full-time executive chairman of the board; and Elchanan Jaglom, formerly chairman of Objet, is serving as the full-time chairman of the executive committee.
Integration
Stratasys management will immediately begin the process of fully integrating the two companies, and the company has formed an executive committee comprised of four members of the board of directors to oversee the integration process. In the near term, customers can expect to work with each company as they always have, and in the coming months, will have the ability to purchase both Stratasys and Objet products from one channel partner point of contact. Learn more at www.StratasysForA3DWorld.com.
GE Acquires Morris: Additive Manufacturing Enhances Production
GE Aviation has acquired the assets of Morris Technologies, and its sister company, Rapid Quality Manufacturing, precision manufacturing companies operating in suburban Cincinnati, Ohio. Terms were not disclosed.
The two privately-held companies, with about 130 Cincinnati-area employees, specialize in additive manufacturing, an automated process for creating rapid prototypes and end-use production components.
With this acquisition, GE Aviation continues to expand its engineering and manufacturing capabilities to meet its growing jet engine production rates over the next five years. (In addition to acquiring these manufacturing processes, GE Aviation will open two new production plants in the United States next year.)
“Morris Technologies and Rapid Quality Manufacturing are parts of our investment in emerging manufacturing technologies,” said Colleen Athans, vice president and general manager of the Supply Chain Division at GE Aviation. “Our ability to develop state-of-the-art manufacturing processes for emerging materials and complex design geometry is critical to our future. We are so fortunate to have Morris Technologies and Rapid Quality Manufacturing just minutes from our headquarters. We know them well.”
The additive manufacturing process involves taking digital designs from computer aided design (CAD) software, and laying horizontal cross-sections to manufacture the part. The process creates the layered cross-sections using a laser beam to melt the raw material. These parts tend to be lighter than traditional forged parts because they don’t require the same level of welding. Additive manufacturing also generates less scrap material during the fabrication process.
Founded by Cincinnati natives Greg Morris, Wendell Morris and Bill Noack in 1994, Morris Technologies (Sharonville) and Rapid Quality Manufacturing (West Chester) have supplied parts to GE Aviation for several years, as well as to GE Power Systems and our Global Research Center. The companies have made everything from lightweight parts for unmanned aerial vehicles (UAVs) for the U.S. military to hip replacement prototypes for the medical field. The Sharonville and West Chester facilities will become part of GE Aviation’s global network of manufacturing operations.
Morris Technologies and Rapid Quality Manufacturing have already been contracted by GE Aviation to produce components for the best-selling LEAP jet engine being developed by CFM International, a 50/50 joint company of GE and Snecma (SAFRAN) of France. The LEAP engine, which is scheduled to enter service in the middle of this decade on three different narrow-body aircraft, has already received more than 4,000 engine orders before the first full engine has even gone to test.
Morris Technologies and Rapid Quality Manufacturing focus on the aerospace, energy, oil & gas, and medical industries.
GE Aviation, an operating unit of GE (GE), is a leading provider of jet and turboprop engines, components, and integrated systems for commercial, military, business and general aviation aircraft. GE Aviation has a global service network to support these offerings. For more information, visit us atwww.geaviation.com. Follow GE Aviation on twitter at http://twitter.com/geaviation and YouTube at http://www.youtube.com/user/geaviation.
Will Apple Make a Big Acquisition to Enter the 3D Printing Market?
Over at Seeking Alpha, Matt Cilderman thinks that Apple should make a move into 3D printing. Specifically, his target of choice is 3D Systems.
3D Systems has a market capitalization of $1.5 billion. For the first quarter of 2012, on a non-GAAP year over year basis, revenues increased 63%, gross profit grew 67%, and earnings per share rose 47%.
They expect full year 2012 revenue to be in the range of $330-360 million and non-GAAP EPS to be from $1.00 to $1.25 (see April 2012 Investor Presentation).
Why should Apple enter the 3D printing market? Cilderman shares 3 reasons:
- Jobs loved disruptive technologies and with the iPod, iPhone, and iPad, he changed the music, movie, telecommunications, and computer industries. 3-D printing may not be there yet, but this is the next, big disruptive technology.
- Apple has a ton of cash on their balance sheet. They could purchase 3D Systems (market capitalization of $1.5 billion) with their spare pocket change. Then, spend the time and money introducing them to Apple’s corporate culture, redesigning the software and hardware to fit Apple’s goals and style.
- 3-D printing and its future also fit right in with Apple’s business model.
Apple is often not the pioneer, but once they enter a market, they build products that are “insanely great” as compared to the competition. Apple has a marketplace for digital goods (music, movies, and apps); perhaps 3D printable designs would be a natural extension. Apple’s products can be used to generate 3D printable designs, as shown by the 123D Catch app.
Read the full editorial at Seeking Alpha.
Apple photo by aditza121 used under Creative Commons license.
Stratasys and Objet Merger: Accretive to Earnings by $0.04 Per Share
Leading 3D printer manufacturers Stratasys and Objet announced a $1.4 billion merger agreement in April 2012. Today they filed a proxy statement for Q1 financial results and pro forma 2011 results.
“We are pleased with the progress we are making as we move forward with the combination of our two companies, creating a leader within the high-growth 3D printing and direct digital manufacturing industry,” said Scott Crump, chief executive officer and chairman of Stratasys. “We are confident that this transaction will build significant long-term value for all stakeholders of both companies, including stockholders, channel partners, customers, and employees.”
The proxy statement provides certain pro forma financial results that outline the combined performance for Stratasys and Objet during prior periods. Included in this press release are certain financial tables that outline the pro forma results on a GAAP and non-GAAP basis for the 3-month period ended March 31, 2012, and the 12-month period ended December 31, 2011. Stratasys standalone results for the same periods, which were previously released, are also provided in the financial tables of this press release for comparative purposes.
The Stratasys and Objet combined pro forma revenue and earnings per share for the 3-month period ended March 31, 2012 on a non-GAAP basis are $83.0 million and $0.32 per share, respectively, compared to Stratasys standalone reported non-GAAP revenue and earnings of $45.0 million and $0.28 per share.
The combined pro forma revenue and earnings per share for the 12-month period ended December 31, 2011 on a non-GAAP basis are $277.0 million and $0.94 per share, respectively, compared to Stratasys standalone reported non-GAAP revenue and earnings of $155.9 million and $1.04 per share.
The non-GAAP financial measures, which exclude certain charges, expenses and income, are outlined in more detail in the tables provided at the end of this press release.
Via MarketWatch.
