3D Systems Corp.
recently signed an agreement to acquire a part of
) product design, engineering and chemistry group and related
assets. The deal is an all-cash transaction and is valued at
This acquisition comes after a 15-year-long partnership
between the companies and is expected to close by the end of
fiscal 2013, subject to regulatory approvals. However, Xerox will
retain its ink and print head development resources along with
research relevant for digital printing and the 3D markets.
The acquisition is a strategic move by 3D Systems, as it
expands the company's existing partnership and also integrates
some of Xerox's ultra modern labs, together with certain licensed
IPs belonging to Xerox. All these will support development and
manufacturing of 3D printers, going forward. 3D Systems expects
to begin operating its own facility effective immediately, at
Xerox's Wilsonville campus.
Through this purchase, 3D Systems intends to add about 100
experienced engineers and contractors from Xerox primarily
specializing in product design and materials science. This apart,
3D System expects to increase its R&D (research and
development) expenditures annually in the range of 75% to 100%
over the next few years. The company also intends to fulfill some
of its pending commitments to Xerox to fully benefit from the
expanded capabilities, going forward.
3D Systems has been aggressively pursuing acquisitions since
Aug 2013 to expand its capability, capacity and geographic reach.
In August, the company purchased design-oriented, cloud-computing
service TeamPlatform, and CRDM, a U.K.-based firm that provides
prototyping and tooling services.
Following that, in September, the company announced the
acquisition of Sugar Labs, a California-based 3D printer of
custom edible products made from sugar. Also, just last week, 3D
Systems acquired Figulo Corporation, the industry's leading
consumer-oriented 3D ceramics printer. On Dec 16, the company
acquired Ohio-based 3D filament manufacturer, Village Plastics
Co. for an undisclosed sum.
3D Systems is a leading provider of 3D content-to-print
solutions including 3D printers, print materials and on-demand
custom parts services for professionals and consumers alike. In
addition, the company provides creative content development and
design productivity tools. The company also offers software
design tools including CAD (computer-aided design), reverse
engineering and inspection, and consumer 3D printers, apps and
3D Systems currently carries a Zacks Rank #3 (Hold). However,
better-ranked stocks in the same industry include
Alps Electric Co. Ltd.
Planar Systems Inc.
). Both hold a Zacks Rank #1 (Strong Buy).
ALPS ELECTRIC (APELY): Get Free Report
3D SYSTEMS CORP (DDD): Free Stock Analysis
PLANAR SYSTEMS (PLNR): Free Stock Analysis
XEROX CORP (XRX): Free Stock Analysis Report
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