3D Systems' LayerWise Buy Boosts 3D Metal Print Portfolio - Analyst Blog

By Zacks Equity Research,

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3D Systems Corp . ( DDD ) recently acquired LayerWise - a Belgium-based provider of advanced direct metal 3D printing and manufacturing services - for an undisclosed sum. The deal is expected to prove immediately accretive to 3D Systems' cash generation.

Through the acquisition of LayerWise, 3D Systems intends to accelerate adoption through complementary sales channels, enhance its 3D Metal Printing and Manufacturing capabilities and expand its IP technology platform and medical device production while strengthening its Direct Metal Printer Expertise and Product Portfolio. 

Further, the LayerWise takeover lends 3D Systems the first mover advantage of providing direct metal printing especially to aerospace, automotive and medical device customers. Further, LayerWise's product portfolio helps 3D Systems gain access to the former's proprietary powder-to-solid metal printers.

LayerWise's direct metal printers provide relative part density of up to 99.98% and match the mechanical properties of metals, at significantly lesser weight. These capabilities have led to the rapid adoption of LayerWise's manufacturing services by medical device, transportation and precision equipment customers for whom reduced weight, strength and accuracy are of vital importance.

3D Systems has been executing strategic acquisitions to diversify its offerings and expand its operating markets. The company expects its portfolio of new and innovative products to lead to more than 30% organic growth over the next couple of years, thereby enhancing its margins and earnings. Since 2012 to date, the company has acquired over 30 companies and has formed strategic partnerships with many leading companies across various fields such as medical equipment, virtual toys, and chocolates, to name a few.

The company's focus on the 3D printing market presents a favorable long-term opportunity. As per the 2013 study by Wholers Associate, 3D printing is expected to become a viable alternative across several market segments. The research firm expects this industry to continue to show double-digit growth over the next few years. Therefore, Wohlers Associates believes that by 2017, the sale of 3D printing products and services will reach a level of $6 billion worldwide, whereas by 2021, the industry is expected to generate $10.8 billion in revenues. As one of the leading companies in 3D printing, these are encouraging statistics for 3D Systems as the company has the ability and expertise to gain market.

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 growth.

Meanwhile, other key players in the industry like Stratasys Ltd. ( SSYS ), Logitech International ( LOGI ) and Voxeljet ( VJET ) are performing well. Stratasys and Logitech sport a Zacks Rank #1 (Strong Buy) while Voxeljet has a Zacks Rank #2 (Buy).

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STRATASYS LTD (SSYS): Free Stock Analysis Report

LOGITECH INTL (LOGI): Free Stock Analysis Report

3D SYSTEMS CORP (DDD): Free Stock Analysis Report

VOXELJET AG-ADR (VJET): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Stocks: SSYS , LOGI , DDD , VJET

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