Stratasys Stock Climbs On Acquisition Rumor
Stratasys, Ltd., an Eden Prairie-based manufacturer of 3D printers and 3D production systems, is reportedly in talks to acquire an industry competitor, Brooklyn-based Makerbot.
Technology news site Tech Crunch, citing an unnamed source close to the matter, reported on the discussions. Monday calls to representatives from both companies were not immediately returned.
Stratasys builds 3D printers that use patented technologies to create 3D objects from fine layers of molten thermoplastic. While Stratasys makes 3D printers on a large scale for industrial use, if it were to acquire Makerbot, the company would be able to expand into entry-level 3D models for average users, according to Tech Crunch.
Upon news of a rumored acquisition, Stratasys’ stock shot up almost 7 percent, or $84 per share, during early afternoon trading Monday. It was trading at $83.05 midday Tuesday.
Stratasys was formed in 2012 by the merger of Stratasys, Inc., and another 3D printing firm, Objet, Ltd., based in Israel. Stratasys now maintains dual headquarter locations in Eden Prairie and Rehovot, Israel.
Makerbot’s revenue totaled about $10 million last year and is expected to total about $50 million in 2013, according to the Wall Street Journal. The newspaper also said that the company has been talking with investors in an attempt to raise $25 million.
Net earnings for Stratasys’ first quarter, which ended March 31, totaled $17.6 million, or $0.43 per share. Earnings per share were $0.05 higher than what analysts polled by Thomson Reuters had expected.
Revenue, meanwhile, totaled $98.2 million in the first quarter, up 18 percent from $83 million during the same period in 2012. First-quarter revenue fell just short of analysts’ projections of $98.3 million.
Stratasys has more than 1,000 employees and holds about 500 granted or pending manufacturing patents globally.