) has completed the acquisition of Solid Concepts and the Harvest
Technologies buyout and is expected to be closed by the end of this
month. Stratasys inked a deal to acquire the two privately-held
companies on Apr 2, 2014. The company has agreed to pay $295
million for the Solid Concepts acquisition, while financial details
of the Harvest deal were not available.
Solid Concepts, founded in 1991, offers an array of additive
manufacturing (AM) solutions, which are used by companies in the
automotive, aerospace, electronics, consumer goods and other
sectors to improve product designs.
On the other hand, Belton-based Harvest Technologies provides
manufacturing process technology and focuses more on end-use parts
for several enterprises. These acquisitions will help Stratasys to
evolve as a leader in the 3D industrial printing and manufacturing
industry and position it for growth in the 3D printing space.
Moreover, Stratasys will integrate Solid Concepts and Harvest
Technologies with RedEye, its digital manufacturing business, to
form a single AM services business unit.
Apart from these, Stratasys also acquired certain assets of
Interfacial Solutions, a production partner of Stratasys' Fused
Deposition Modeling (FDM) platform. We believe that the acquisition
will also expand and enhance Stratasys' 3D Printing Platform.
Moreover, this acquisition will enable Stratasys to attract new
clients and strengthen its overall market position.
Nonetheless, investments to boost growth are expected to impact
the company's results in the near term. Management expects
operating expenses related to sales & marketing and research
& development to increase in 2014 which will impact operating
margins in 2014. Moreover, Stratasys is concerned about its
high-cost business model and competition from the likes of
3D Systems Corp.
The ExOne Company
Stratasys has a Zacks Rank #4 (Sell).
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