3D-printing pioneer Stratasys Ltd. announced on Dec. 9 that it has signed an agreement to acquire 3D-printing startup Origin Inc. for a total consideration of up to $100 million, including cash and stock. The merger enables Stratasys to expand its leadership through innovation in the fast-growing mass production parts segment with a next-generation photopolymer platform.
Stratasys expects Origin’s proprietary Programmable PhotoPolymerization (P3) technology to be an important growth engine for the company, adding up to $200 million incremental annual revenue within five years. The acquisition will help fortify Stratasys’ leadership position in polymers and production applications of 3D printing in industries such as dental, medical, tooling, and select industrial, defense, and consumer goods segments, said the company.
Origin’s P3 technology, described as advancing Digital Light Processing (DLP) principles, cures liquid photopolymer resin with light. The company’s first manufacturing-grade 3D printer, Origin One, precisely controls light, heat, and force, among other parameters, via its closed-loop feedback software. This technology reportedly enables customers to build parts with industry-leading accuracy, consistency, size, and detail using a range of commercial-grade resins.
The acquisition is expected to accelerate Stratasys’s growth rate and be slightly dilutive to non-GAAP earnings per share in 2021 and accretive to Stratasys’s non-GAAP earnings per share by 2023. The Origin team will join Stratasys and lead the development of its technology and product platform. A full global launch is expected in mid-2021.
“Our customers are looking for additive manufacturing solutions that enable use of industrial-grade resins for mass production parts with process and quality control,” said Stratasys CEO Yoav Zeif. “We believe Origin’s software-driven Origin One system is the best in the industry by combining high throughput with incredible accuracy. When combined with Origin’s extensive materials ecosystem and our industry-leading go-to-market capabilities, we believe we will be able to capture a wide range of in-demand production applications on a global scale. Together with our intended entry into powder bed fusion technology, the acquisition of Origin reflects another step in fulfilling our objective to lead in polymer additive manufacturing by offering comprehensive best-in-class technologies and solutions to create a fully digital additive value chain, designed for Industry 4.0 integration.”
Origin works with a network of material partners such as Henkel, BASF, and DSM to develop resins for its system. “We partnered and developed materials with Origin before Origin One was launched because we believed in their technology and vision for the future of photopolymers in additive manufacturing,” said François Minec, Managing Director, BASF 3D Printing Solutions GmbH. “Now, as part of Stratasys, we’re confident that together we can take on the broader manufacturing ecosystem.”
Origin CEO and co-founder Christopher Prucha commented: “Stratasys is the best company for us to join to achieve our vision, giving us an unparalleled opportunity to significantly expand market reach and enable us to bring our P3 technology to a larger audience.”
Subject to various approvals, the acquisition is expected to close in January 2021.