Stratasys To Buy Two Privately Held, Additive Manufacturing Service Providers

(RTTNews) - Stratasys Ltd. (SSYS), a provider of 3D printing and additive manufacturing solutions, Wednesday said it has agreed to acquire two privately-held, additive manufacturing services companies, Solid Concepts Inc. and Harvest Technologies.

Stratasys CEO David Reis said, "We will apply our integration expertise to combine Solid Concepts and Harvest Technologies with our existing RedEye digital manufacturing service business to form a single business unit focused on additive manufacturing services."

Stratasys said it will pay Solid Concepts up to $295 million, including a $175 million payment on closing, deferred payments of $60 million and up to $63 million in retention-related payments. The company did not disclose the consideration for Harvest Technologies.

Stratasys expects the acquisitions to add to adjusted earnings within the first 12 months after closing. The transactions may close early in the third quarter.

President of Solid Concepts, Joe Allison will lead the combined parts business and he will be supported by management teams of Solid Concepts, Harvest Technologies, and RedEye.

Solid Concepts has six facilities in the U.S. staffed by 450 employees and generated $65 million revenues in 2013.