3D printer manufacturers Stratasys and Objet have merged in a deal that will create a company with an equity value of approximately $1.4 billion, and narrow what was a fairly small cast of players down to an even smaller number as the companies look to take advantage of the growing market.
The combined company, which will retain the Stratasys name, will have dual headquarters in Eden Prairie, Minn., and Rehovot, Israel, and will each continue to operate "as usual," according to Erez Simha, chief operating officer at Objet, who talked to Design News about the business drivers behind the acquisition.
Stratasys' Fused Deposition Modeling (FDM) technology creates functional prototypes and production-class parts via a layered process using engineering-grade thermoplastics. (Source: Stratasys)
"The rational behind this merger is it allows scalability, allowing us to grow faster compared to growth as two standalone companies," Simha says. "Our products and technology are complementary so we can offer our customers solutions for a much broader range of applications and for a wider range of vertical industries."
To be sure, there doesn't seem to be that much overlap in terms of what technologies both companies are noted for. Stratasys' claim to fame is Fused Deposition Modeling (FDM), an additive manufacturing technology used to create functional prototypes and production-class parts via a layered process using engineering-grade thermoplastics. Objet is known for its PolyJet Matrix technology, which uses a dual-jet process, allowing for the combination of materials in different ways.
@A.Peeples: I agree with you completely. I think that the ability to consolidate sales and marketing arms and potentially leverage some internal R&D expenditures can help the combined companies--this one, Stratasys and Objet--and the other big merged player--3D Systems and ZCorp--really push the technology to the next level and get the price down on more consumer-friendly offerings. I think we are just at the tip of the iceberg of what's possible.
I for one think that it is fantastic that companies in this arena are merging. As you mentioned, this is a relatively new technology. Often, new technologies will spawn many small companies - all paying high overhead and incurring major expenses to bring their product to market. In our own company, we have been researching 3D printers but can't justify the high prices. Through university programs, I have gained extensive knowledge of the Objet line of printers and can attest that they create some of the finest quality "prints" - the resolution is incredible and the medium options are extensive. Many companies however, often can't justify the high expense of these systems - often in the 6 figure range (plus medium and maintenance). By merging companies and maturing the technology, prices are sure to come down and make this equipment much more commonplace in engineering, research, and design.
You stated in your article that the two companies will remain much as they were before. Still, I look forward to seeing any new products that they produce during the next few years. With what seems to be exponential growth in the quality and quantity of printers on the market, it is a very exciting time for this field.
@Naperlou: Definitely signs of a maturing industry and one that needs some distribution/marketing/development muscle to blow past early niche adopters and go more mainstream.
The 3D printer you likely saw that looks like a pinball machine is the Makerbot Replicator. It definitely has an old-school carnival look to it.
Ann, this is a sign of a maturing industry. I am sure there are technology improvements ahead, but that will take larger scale. The devices are also getting larger and more capable. I saw one at a shop I thought was a toy. The case was wood, like an old pinball or pachinko machine. It works fine, but looks tentative, shall we say.
People also underestimate the cost and importance of marketing and distribution.
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A quick look into the merger of two powerhouse 3D printing OEMs and the new leader in rapid prototyping solutions, Stratasys. The industrial revolution is now led by 3D printing and engineers are given the opportunity to fully maximize their design capabilities, reduce their time-to-market and functionally test prototypes cheaper, faster and easier. Bruce Bradshaw, Director of Marketing in North America, will explore the large product offering and variety of materials that will help CAD designers articulate their product design with actual, physical prototypes. This broadcast will dive deep into technical information including application specific stories from real world customers and their experiences with 3D printing. 3D Printing is
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