) entered into a definitive one-year agreement with the leader in
desktop 3D printing, MakerBot, a subsidiary of
MakerBot Industries is a New York-based developer of 3D printers,
founded in Jan 2009 by Bre Pettis, Adam Mayer and Zach Smith. On
Jun 19, 2013, Stratasys Incorporated acquired MakerBot for a stock
deal worth $403 million.
Per the recent deal, Tech Data will act as a distribution partner
and represent MakerBot 3D printing and scanning products
exclusively within the 3D printing category during the tenure of
Tech Data believes that this partnership will enable it to provide
its reseller partners with a unique mix of cutting-edge products
that meet the growing demands of end users. This, in turn, will
expand their businesses and profitability in the channel going
Per Gartner, worldwide shipments of 3D printers will rise 75.0% to
98,065 units in 2014 and almost double in 2015. IDC has predicted
that the 3D printer market will experience a compound annual growth
rate of 29.0% from 2012-2017.
We believe that with this partnership, Tech Data will be able to
enhance end-user experience, which in turn will drive its growth
We believe that the company's growing exposure to volatile European
markets remains a concern. Moreover, Tech Data's not-so optimistic
guidance will remain a headwind in the near term.
Nevertheless, Tech Data will benefit from stabilization in personal
computers through the rest of 2014. Its partnership with
) to distribute Chromebooks and
) to deliver VMWare VSphere ® 5 to its resellers, will drive its
top line. Further, the company's improving execution (particularly
in Europe), superior customer service and improving market share in
the Americas are positives.
Currently, Tech Data has a Zacks Rank #3 (Hold).
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