3D Systems Corp
) 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
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
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
Meanwhile, other key players in the industry like Stratasys Ltd.
), Logitech International (
) and Voxeljet (
) 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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