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3D printing industry juggernaut 3D Systems (NYSE: DDD) has announced its latest acquisition.
The company has signed an agreement to acquire approximately 80 per cent of leading global provider of Direct Metal Selective Laser Sintering 3D Printers Phenix Systems.
This is the most recent in a very long line of high-profile acquisitions for 3D Systems, which has cut lucrative deals with Geomagic and Z Corp in the past two years.
Based in Riom, France, Phenix Systems designs, manufactures and sells proprietary Direct Metal 3D Printers that can print chemically pure, fully-dense metal and ceramic parts from extremely fine powders. The materials it works in include steel tool steel, non-ferrous alloys, super alloys, precious metals and alumina for a variety of aerospace automotive and patient specific medical device applications.
3D Systems' extensive technology portfolio - which is to thank for its impressive Q1 financial performance - combines with Phenix Systems' unique Direct Metal technology positions the industry leader at the heart of the fast-growing automotive, defence, aerospace and patient specific healthcare manufacturing arenas.
CEO of Phenix Systems Francois Reymondet commented: "We have watched and admired 3D Systems for many years as they have driven the adoption of 3D content-to-print solutions globally. We believe that now is the right time to combine our efforts to take advantage of the accelerating demand for direct metal production."
The deal adds complementary printers and materials, strengthens 3D Systems' Selective Laser Sintering technology platform an is anticipated to be accretive to the organisation's non-GAAP earnings in the first full year following the completion of the transaction.
President and CEO of 3D Systems Avi Reichental stated: "Phenix represents the perfect strategic fit for us and we are thrilled to welcome Francois Reymondet, Patrick Teulet and their entire team to 3D Systems once the deal has closed.
"Our complementary capabilities in advanced manufacturing combined with our research and development and extensive marketplace reach and coverage are sure to result in current and future direct metal solutions that will delight our customers."
This acquisition is subject to customary closing conditions and it expected to be completed next month. After those conditions are met and the deal is approved, 3D Systems intends to launch a takeover bid on the remaining 20 per cent of Phenix Systems' shares, which are listed on the French stock market. This will be followed by a squeeze-out procedure, should it reach 95 per cent of the shares - or voting rights - of Phenix Systems over the second half of this year. The maximum price payable by 3D Systems for the 80 per cent block is €13 per share.
