Rock Hill, S.C. — 3D Systems (NYSE: DDD) has announced that it has completed the acquisition of Xerox's solid ink engineering and development teams, plus the development labs and patent portfolio, for $32.5 million in cash. 3D Systems says it will bring the printer design and material science teams together, along with the associated IP, to further its R&D efforts and manufacturing capabilities.
3D Systems is a provider of 3D printing design-to-manufacturing products that allow customers to design and create products in plastic, metal, ceramics and even edible goods. Additional tools, such as a 3D scan-based design workflow, freeform modeling and inspection devices, help usher users through the process of replacing more traditional methods of design and manufacturing.
Avi Reichental 3D Systems' President and CEO, said in a statement: “This bold step is consistent with our belief that we must act quickly and decisively to extend and cement our marketplace leadership position and leverage unique opportunities to bring affordable, high performance new products to market years ahead of what would have been possible to accomplish organically.”
As part of the acquisition, 3D Systems is adding more than 100 Xerox engineers and contractors to its global R&D team, who will begin to operate immediately out of its own facility within the Xerox Wilsonville campus. This agreement is part of a larger plan to increase R&D expenditures over the next few years by as much as 100 percent over 2013 expenses.
Reichental added: “The stronger our marketplace leadership, the more powerful our economic model becomes. Simply put, a solidified position translates directly to higher revenue, higher profitability and greater earnings power over time and we are willing to sacrifice short term earnings to get there faster.”