3D Systems Corporation
) gained 3.6% after the company announced its acquisition of
Columbus based Laser Reproductions, leading provider of services
for rapid prototyping, manufacturing, product development and
stereolithography. The acquisition announced on Aug 6 will enhance
3D Systems' Quickparts Solutions business in the U.S.
Laser Reproductions possesses prolific experience in advanced
manufacturing services stretched over three decades. Apart from
infrastructure to support high production volumes, the company
boasts of strong relationships with a number of blue chip firms in
3D Systems has been leveraging its robust financial position to
broaden its presence in the materials, medical and metal
industries. In the recently reported second quarter results,
despite a number of acquisitions the company saw strong
year-over-year growth in both cash and cash equivalents and
operating cash flow. Though the company has kept the financial
terms of the transaction under covers, the deal is likely to be
significantly beneficial to its business.
Quickparts Solutions offers speedy and customized manufacturing
of complex prototypes of parts in both plastic and metal.This
apart, the company provides relevant production tooling and part
options for a smooth transformation from prototyping to the
production phase. 3D Systems' is likely to gain substantially from
Laser Reproductions' advanced production capabilities. This along
with its strong networks comes as a positive. Laser Reproductions
will perfectly complement Quickparts Solutions to drive growth in
its on-demand, quick-turn cloud manufacturing offerings while
expanding it further in North America.
Further, the acquisition of Laser Reproductions, being
immediately accretive to 3D Systems is expected to add to its
non-GAAP earnings within a year.
In the past quarter, the company announced a number of
acquisitions including Medical Modeling and Robtec. Most recently,
the company announced a $120 million acquisition of Simbionix.
This Zacks Rank #3 (Hold) company is not only driving growth
through strategic acquisitions but is also investing continuously
in research and development (R&D) for sustainable long-term
However, the stiff competition from other key players in the
industry like Stratasys Ltd. (
), ExOne Company (
) and Voxeljet (
) remains a concern.
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
3D SYSTEMS CORP (DDD): Free Stock Analysis
STRATASYS LTD (SSYS): Free Stock Analysis
VOXELJET AG-ADR (VJET): Free Stock Analysis
EXONE CO/THE (XONE): Free Stock Analysis Report
To read this article on Zacks.com click here.