Stratasys to Acquire Solid Concepts and Harvest Technologies
Transactions Create a Leading Strategic Platform to Meet Customers'
Additive Manufacturing Needs, Driving Further Adoption of Stratasys'
Additive Manufacturing Solutions
Provides Stratasys with Significant Manufacturing and End-Use Parts
Production Capabilities, Capacity and Process Knowhow
Transactions Expected to be Accretive to Non-GAAP Earnings Per Share
Within First 12 Months After Closing
MINNEAPOLIS & REHOVOT, Israel--(BUSINESS WIRE)--
Stratasys Ltd. (NASDAQ:SSYS), a leading global provider of 3D printing
and additive manufacturing solutions, today announced that it has
entered into definitive agreements to acquire two privately-held
companies, Solid Concepts Inc. and Harvest Technologies. Solid Concepts
is the largest independent additive manufacturing service bureau in
North America and a fast-growing partner to RedEye, Stratasys' existing
digital manufacturing service business. The transactions are expected to
be completed early in the upcoming third quarter, subject to customary
closing conditions, and are expected to be accretive to Stratasys'
Non-GAAP earnings per share within the first 12 months after closing.
Upon completion of the transactions, Stratasys will combine Solid
Concepts and Harvest Technologies with RedEye to establish one additive
manufacturing services business unit. Joe Allison, President of Solid
Concepts, will join the Stratasys management team and lead the combined
parts business, supported by the strong management teams of Solid
Concepts, Harvest Technologies, and RedEye.
Solid Concepts and Harvest Technologies are leading providers of
additive manufacturing services. With the addition of Solid Concepts and
Harvest Technologies, Stratasys is creating a leading strategic platform
focused on meeting customers' additive manufacturing needs through an
expanded technology and business offering. Solid Concepts and Harvest
Technologies provide Stratasys with significant manufacturing and
end-use parts production capabilities, infrastructure, capacity and
process knowhow, which are expected to accelerate and enable further
adoption of additive manufacturing. The combination of Solid Concepts'
deep knowledge of manufacturing and vertical focus, such as medical and
aerospace, and Harvest Technologies' experience in parts production, as
well as materials and systems knowhow, together with RedEye, strengthens
Stratasys' direct digital manufacturing and parts production expertise.
Solid Concepts, based in Valencia, California, is an industry pioneer,
having provided additive manufacturing solutions to customers since its
founding in 1991. Solid Concepts has developed extensive U.S.-based
capacity and infrastructure with six U.S. facilities staffed by
approximately 450 employees. Solid Concepts maintains a broad variety of
technology platforms and processes for additive manufacturing and serves
a diverse customer base across a wide range of verticals, including
medical, aerospace, and industrial, among others. Solid Concepts
provides an overarching platform that, with the integration of Harvest
Technologies and RedEye, is expected to create a comprehensive additive
manufacturing solution provider. Solid Concepts generated revenues of
approximately $65 million in 2013.
Harvest Technologies, based in Belton, Texas, is a specialty additive
manufacturing service bureau established in 1995, with approximately 80
employees. Harvest Technologies has deep manufacturing process knowhow
and focuses on advanced end use parts applications. Harvest Technologies
was the first additive manufacturing company in North America to become
AS9100/ISO 9001 certified, and continues to produce end-use parts for
Under the terms of the definitive agreement with Solid Concepts,
Stratasys will acquire Solid Concepts for total consideration of up to
$295 million, including a payment on closing of $172 million (or, if
settled in cash, part on closing and part six months after closing),
deferred payments of $60 million and up to $63 million in
retention-related payments. Subject to certain requirements for cash
payments, Stratasys retains discretion to settle any of the amounts
payable under both the definitive agreement and the retention plan in
either Stratasys shares, cash or any combination of the two. The value
of a portion of the purchase price as well as the deferred and
retention-related payments may increase or decrease in line with the
market price of Stratasys shares.
Under the terms of the definitive agreement with Harvest Technologies,
Stratasys will acquire Harvest Technologies for an undisclosed amount,
including retention-related payments, payable in cash, shares or a
"We are pleased to announce these strategic transactions, which will
enable us to provide customers with a comprehensive offering that
addresses a broad spectrum of additive manufacturing solutions," said
Stratasys CEO David Reis. "With Solid Concepts and Harvest Technologies,
together with RedEye, we expect to create a strategic platform to meet
our customers' additive manufacturing requirements by significantly
expanding our offering, targeting new applications, and strengthening
our customer relationships. As our customers' requirements continue to
expand, we must evolve to create full service offerings that provide a
variety of technologies and custom manufacturing solutions and focus on
high-end production applications. Solid Concepts and Harvest
Technologies are industry pioneers and innovators in the additive
manufacturing space. In acquiring these two unique companies, Stratasys
is gaining a broad solutions offering with technologies and decades of
application and manufacturing experience which, together with RedEye,
are expected to create an industry-leading additive manufacturing and
parts production platform."
"These transactions are consistent with our core strategic imperatives
and M&A strategy, which is focused on acquiring leading companies to
support our goal of continued leadership in the segments in which we
operate, as well as reaching new niche verticals," Mr. Reis continued.
"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. Importantly, with our shared cultures of
innovation and customer service, we believe this will be a smooth
transition. We look forward to welcoming the talented teams of Solid
Concepts and Harvest Technologies to Stratasys - we are confident we
have a very bright future together."
Joe Allison, President of Solid Concepts, said, "We are excited to be
joining forces with Stratasys, a global leader in 3D printing and
additive manufacturing. As part of a larger company with a broad
customer reach and market coverage, Solid Concepts will be even better
positioned to meet the significant demand for our additive manufacturing
offerings. We look forward to working with Stratasys to ensure a smooth
and orderly integration of our businesses."
David K. Leigh, President of Harvest Technologies, said, "We are
delighted to join forces with Stratasys and Solid Concepts in a
transaction that will enhance Harvest Technologies' leadership in
producing end use parts using the most advanced additive manufacturing
technologies and processes."
Benefits of the Transaction
Creates a leading strategic platform to meet a broad range of
customers' additive manufacturing needs. The acquisitions of Solid
Concepts and Harvest Technologies provide Stratasys with the ability
to offer customers a more comprehensive solution based on multiple
technologies that address a broad spectrum of additive manufacturing
needs. The combination of Solid Concepts' deep knowledge of
manufacturing and vertical focus, such as medical and aerospace, and
Harvest Technologies' experience in parts production, as well as
materials and systems knowhow, strengthens Stratasys' direct digital
manufacturing and parts production expertise.
Provides Stratasys opportunities to leverage significant
manufacturing services capabilities. With their capacity,
knowledge and experience, Solid Concepts and Harvest Technologies are
expected to allow Stratasys to expand into a broad range of
capabilities and applications expertise across a wide range of new and
existing applications. The strong and experienced management teams of
Solid Concepts and Harvest Technologies, combined with RedEye, provide
deep process knowhow around using additive manufacturing for
Creates opportunity for cross-selling synergies. Once Solid
Concepts and Harvest Technologies, together with RedEye, have been
integrated into a single business unit, Stratasys will leverage cross
sell opportunities that are expected to generate long-term synergies
with the company's system business.
Compelling financial benefits. Both Solid Concepts and Harvest
Technologies have strong financial track records. The transactions are
expected to be accretive to Stratasys' non-GAAP earnings per share
within the first 12 months after closing.
Investor Conference Call and Webcast
A conference call to discuss the acquisitions is scheduled for
Wednesday, April 2, 2014 at 7:00 a.m. Central Time / 8:00 a.m. Eastern
Time / 3:00 p.m. Israel Time. To participate by phone, the U.S. dial-in
number is +1 (866) 610-1072, and the international dial-in number is +1
(973) 935-2840. Please reference conference ID# 21538988. Participants
are advised to dial into the call at least 10 minutes prior to the call
start time to register. The conference call will also be available via
live webcast on the Stratasys website at Stratasys.com under the
"Investors" tab. A presentation will accompany the conference call.
A replay of this conference call may be accessed by webcast or by
telephone. To access the replay, please dial +1 (800) 585-8367 (U.S.) or
+1 (404) 537-3406 (international) and reference conference ID# 21538988.
The replay and archived webcast will be available through 11:59 p.m. ET
on April 9, 2014.
Stratasys Ltd. (Nasdaq:SSYS), headquartered in Minneapolis, Minn.
and Rehovot, Israel, is a leading global provider of 3D printing and
additive manufacturing solutions. The company's patented FDM®
and PolyJet™ 3D Printing technologies produce prototypes and
manufactured goods directly from 3D CAD files or other 3D content.
Systems include 3D printers for idea development, prototyping and direct
digital manufacturing. Stratasys subsidiaries include MakerBot and
Solidscape, and the company operates the RedEye digital-manufacturing
service. Stratasys has more than 1800 employees, holds over 550 granted
or pending additive manufacturing patents globally, and has received
more than 25 awards for its technology and leadership. Online at: www.stratasys.com
About Solid Concepts
Solid Concepts Inc. provides custom manufacturing solutions via additive
manufacturing, rapid prototyping, CNC machining, cast urethanes,
injection molding and tooling. Since 1991, Solid Concepts has provided
engineering expertise from multiple fields to bring success to new
products in the aerospace, medical, consumer product industries and
more. Capabilities in PolyJet, Stereolithography (SLA), Plastic and
Metal Laser Sintering (SLS & DMLS), Fused Deposition Modeling (FDM),
QuantumCast™ Cast Urethanes, CNC, Tooling and Injection Molding allow
for low to high volume production of plastics, urethanes, and metals
directly from design data, resulting in significant time and cost
savings. ISO 9001 and AS9100 certifications. http://www.solidconcepts.com/.
About Harvest Technologies
Harvest Technologies was founded by David K. Leigh and, his father,
David E. Leigh in 1995. Now with almost 20 years of experience in the
additive manufacturing industry, Harvest Technologies runs a fleet of 40
laser sintering (LS/SLS), direct metal laser sintering (DMLS), fused
deposition modeling (FDM), and stereolithography (SL/SLA) machines in a
cutting-edge 40,000 sq. facility. It is Harvest Technologies' mission to
provide top-quality parts and customer service, while continuing to
build their reputation as the most valued partner and supplier in the
prototype and direct digital manufacturing trades. Harvest Technologies
is an AS9100C/ISO 9001:2008 certified supplier. For more information
please visit http://www.harvest-tech.com.
Cautionary Statement Regarding Forward-Looking Statements
Certain information included or incorporated by reference in this press
release may be deemed to be "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995, Section
27A of the Securities Act of 1933, and Section 21E of the Securities
Exchange Act of 1934. Forward-looking statements are often characterized
by the use of forward-looking terminology such as "may," "will,"
"expect," "anticipate," "estimate," "continue," "believe," "should,"
"intend," "project" or other similar words, but are not the only way
these statements are identified. These forward-looking statements may
include, but are not limited to, statements relating to the company's
objectives, plans and strategies, statements that contain projections of
results of operations or of financial condition (including, with respect
to the Harvest Technologies and Solid Concepts merger) and all
statements (other than statements of historical facts) that address
activities, events or developments that the company intends, expects,
projects, believes or anticipates will or may occur in the future.
Forward-looking statements are not guarantees of future performance and
are subject to risks and uncertainties. The company has based these
forward-looking statements on assumptions and assessments made by its
management in light of their experience and their perception of
historical trends, current conditions, expected future developments and
other factors they believe to be appropriate. Important factors that
could cause actual results, developments and business decisions to
differ materially from those anticipated in these forward-looking
statements include, among other things: the company's ability to
efficiently and successfully integrate the operations of Stratasys, Inc.
and Objet Ltd. after their merger as well as the ability to successfully
integrate MakerBot, Solid Concepts and Harvest Technologies and other
acquired entities into Stratasys; the overall global economic
environment; the impact of competition and new technologies; general
market, political and economic conditions in the countries in which the
company operates; projected capital expenditures and liquidity; changes
in the company's strategy; government regulations and approvals; changes
in customers' budgeting priorities; litigation and regulatory
proceedings; and those factors referred to under "Risk Factors",
"Information on the Company", "Operating and Financial Review and
Prospects", and generally in the company's annual report on Form 20-F
for the year ended December 31, 2013 filed with the U.S. Securities and
Exchange Commission and in other reports that the Company has filed with
the SEC. Readers are urged to carefully review and consider the various
disclosures made in the company's SEC reports, which are designed to
advise interested parties of the risks and factors that may affect its
business, financial condition, results of operations and prospects. Any
forward-looking statements in this press release are made as of the date
hereof, and the company undertakes no obligation to publicly update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by law.
Shane Glenn, +1-952-294-3416
VP Investor Relations
Source: Stratasys Ltd.
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