Stratasys to acquire smaller 3D printer rival MakerBot in $604 mn deal
20 Jun 2013
Stratasys, the 3D printer and additive manufacturing company is buying start-up desktop 3-D printer maker MakerBot in a $604 million deal.
Stratasys, itself the result of a merger of two 3D printing companies, will pay $403 million in exchange for all of MakerBot's stock, and pay an additional $201 million based on Stratasys' Wednesday closing stock price of $84.60, subject to MakerBot's performance during the next two years.
Founded in 2009, Brooklyn-based MakerBot, has become a leader in desktop 3D printing with a 16 per cent market share of all 3D printers made from 2009 to the end of 2011. In 2011, MakerBot had 21.6 per cent market share.
Engineers and designers and hobbyists have helped to popularise MakerBot's 3D printing machine since it is small and used as any regular desktop printer.
Desktop 3D printer usage among design and engineering professionals is growing rapidly. Stratasys and MakerBot estimate that between 35,000 to 40,000 desktop 3D printers were sold in 2012.
The MakerBot Replicator printer is an ideal machine for making true-to-life replicas, high-resolution models, functioning prototypes, visual aids, real world products, and more.
''The combination of these two industry leaders is expected to drive faster adoption of 3D printing for multiple applications and industries, as desktop 3D printers are becoming a mainstream tool across many market segments,'' Stratasys said in a statement.
Stratasys said that post closing, MakerBot will operate as a separate subsidiary maintaining its own identity, products and market strategy, and Bre Pettis, CEO and co-founder of MakerBot, will continue to lead the company.
"MakerBot's 3D printers are rapidly being adopted by CAD-trained designers and engineers," said David Reis, Stratasys CEO. "Bre Pettis and his team at MakerBot have built the strongest brand in the desktop 3D printer category by delivering an exceptional user experience. MakerBot has impressive products, and we believe that the company's strategy of making 3D printing accessible and affordable will continue to drive adoption. I am looking forward to working with Bre," added Reis.
"The last couple of years have been incredibly inspiring and exciting for us," noted Pettis. "We have an aggressive model for growth, and partnering with Stratasys will allow us to supercharge our mission to empower individuals to make things using a MakerBot, and allow us to bring 3D technology to more people."
Minnesota and Israel-based Stratasys was formed in 2012 by the merger of 3D printing companies Stratasys Inc. and Objet Ltd.
It manufactures 3D printers and materials for prototyping and production and has the widest in the industry of over 130 3D printing materials that includes in excess of 120 proprietary inkjet-based photopolymer materials and 10 proprietary FDM-based thermoplastic materials.
It also manufactures Solidscape 3D Printers and operates the RedEye On Demand digital-manufacturing service.
Stratasys holds more than 500 granted or pending additive manufacturing patents globally.
