3D Systems to buy Arcam?

3d printing giant 3D Systems (DDD) announced today it is raising another $250 million to fund acquisitions. It will do this by trying to sell more stock they are issuing in a secondary offering.

3D Systems Logo

Given the size of the raise, we’ve heard from industry insiders that the most likely company 3D Systems is raising the money to buy is Arcam AB (AMAVF).  Arcam is a Swedish company that produces industrial 3d printers that print in metal.

Arcam has recently been growing and has sold more of their high end 3d printers in the past six months. Their technology and patents would help round out the 3D Systems portfolio of industrial use 3d printers. The metal 3d printers are used in the aerospace industry and in medical implants. They are already profitable and have tested and well known technology. Purchasing Arcam would be an excellent business decision for 3D Systems.

Some acquisitions of 3D Systems have been treated as separate divisions within 3D Systems, with separate management running them almost as a separate company. Others have been rolled into existing platforms, expanding Cubify or other offerings 3D Systems has. Because of the size and location of Arcam, we would expect them to be run with a larger divide between them and the rest of 3D Systems than previous acquisitions.

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May 8, 2013
Categories: Investing, Metal 3D Printing, News