Stratasys Announces First Acquisition Deal of the Year
3D printer manufacturer Stratasys Ltd. has announced its first acquisition deal of 2022.
With dual headquarters in Eden Prairie and Israel, the company on Monday announced it has signed a definitive agreement to acquire the additive manufacturing materials business of Germany-based Covestro AG for a minimum price of approximately $43.8 million, with an additional potential earnout of up to $37.7 million. The additional payout is subject to the achievement of various performance metrics.
Slated to close during the first quarter of 2023, the transaction also includes Covestro’s research and development facilities and activities, along with global development and sales teams across Europe, the U.S., and China. Stratasys also will inherit a portfolio of approximately 60 additive manufacturing materials, as well as an IP portfolio comprising hundreds of patents and patents pending, according to a news release announcing the acquisition. The majority of employees of the acquired business within Covestro AG will continue to be based in Geleen, Netherlands, and Elgin, Illinois.
“Innovative materials are the fuel of additive manufacturing and translate directly into the ability to create new use cases for 3D printing, particularly in the production of end-use parts like dental aligners and automotive components,” Stratasys CEO Dr. Yoav Zeif said in the release. “The acquisition of Covestro’s highly regarded Additive Manufacturing business positions us to further grow adoption of our newest technologies. We will now have the ability to accelerate cutting-edge developments in 3D printing materials, and advance our strategy of providing the best and most complete polymer 3D printing portfolio in the industry.”
While Covestro’s additive manufacturing materials business may be the first acquisition of the year for Stratasys, the company is no stranger to acquisitions.
Seeking acquisitions is part of Strarasys’ growth strategy, according to the company’s 2021 year-end report.
Stratasys, which gets most of its revenues from the sale of additive manufacturing systems and related consumables, identified in the report that the company’s ability to compete in this continually advancing and evolving market is dependent on enhancing existing products and developing new product offerings.
With a strategic goal to strengthen the company’s position in polymers and the mass production parts market, Stratasys acquired Origin Laboratories Inc. in December 2020. That company specializes in photopolymer solutions for production applications. And last year, Stratasys acquired two companies with 3D printer lines: UK-based RP Support Ltd. and Xaar 3D, a portion of the Cambridge-based Xaar business, the report states.