3D-Printer Maker 3D Systems to Acquire Part of Xerox’s Solid-Ink Engineering and Development Teams
3D Systems and Xerox today announced that 3D-printer maker 3D Systems will be acquiring Xerox’s 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. This agreement expands the decade-and-a half long collaboration between the companies, which has produced 3D Systems’ best-selling ProJet series 3D printers.
“We are pleased to expand our relationship with an innovative partner of the caliber of Xerox and expect that acquiring some of the Xerox Wilsonville engineering team, together with their state-of the-art development labs and selected licensed IP, to catapult our 3D printers’ development and manufacturing capabilities forward,” said Avi Reichental, 3D Systems’ president and CEO. “This bold step is consistent with our belief that we must act quickly and decisively to extend and cement our marketplace leadership position by taking full advantage of the window of unprecedented opportunity in front of us.”
“This deal takes advantage of Xerox’s world-class capabilities and expands our relationship with 3D Systems in the exciting and dynamic 3D printing industry,” said Kevin Warren, president of Xerox Strategic Growth Initiatives. “It emphasizes how we are leveraging our expertise while we continue to evolve our business model and pursue strategic growth opportunities.”
As part of this agreement, 3D Systems expects to add more than 100 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 printing markets. 3D Systems also expects to progressively increase its annual R&D expenditures by approximately 75 to 100 percent over the next few years as it completes certain Xerox-related engineering services commitments and leverages its expanded capabilities.
3D Systems is a leading provider of 3D content-to-print solutions including 3D printers, print materials and cloud sourced on-demand custom parts for professionals and consumers alike with materials including plastics, metals, ceramics, and edibles. The company also provides software tools including scan to CAD and inspection as well as consumer 3D printers, apps and services. It says its expertly integrated solutions replace and complement traditional methods and reduce the time and cost of designing new products by printing real parts directly from digital input. These solutions are used to rapidly design, create, communicate, prototype or produce real parts, empowering customers to manufacture the future.