3D Systems To Buy Xerox's Oregon Product Design, Engineering And Chemistry Group

(RTTNews) - 3D Systems corp. (DDD) entered into a definitive agreement to acquire Xerox Corp.'s (XRX) Wilsonville, Oregon product design, engineering and chemistry group and related assets for $32.5 million in cash.

Both companies expect the transaction to close before the end of 2013, subject to fulfillment of certain customary conditions.

The companies said that the agreement expands the decade and a half long collaboration between them, that already produced 3DS' best-selling ProJet series 3D printers.

As part of the agreement, 3DS expects to add more than 100 experienced Xerox engineers and contractors specializing in product design and materials science to its global R&D team and immediately begin to operate its own facility within the Xerox Wilsonville campus. Xerox will maintain ink and print head development resources along with research relevant for digital printing and the 3D markets.

In connection with this strategic investment, 3DS expects to progressively increase its annual R&D expenditures by approximately 75% to 100% over the next few years as it completes certain Xerox related engineering services commitments and fully leverages its expanded capabilities.