Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



3D Systems Buying Phenix Systems

3-dimensional printing pioneer 3D Systems (NYSE: DDD  ) grew its business 31% last quarter -- but it's not stopping there. On Wednesday, 3D announced it's planning to grow through acquiring Phenix Systems, a maker of direct metal selective laser sintering 3-D printers.

3D has signed an agreement to buy an 80% interest in France-based Phenix, which specializes in the additive manufacturing of metal and ceramic machine parts. The company's printers are capable of printing parts in stainless steel, tool steel, super alloys, non-ferrous alloys, alumina, and even in precious metals, for a variety of uses in the aerospace, automotive, and medical device industries.

After acquiring its initial 80% stake in July, 3D says it intends to make a takeover bid to acquire the remaining 20% of Phenix shares. 

Phenix Systems is listed on the Alternext stock exchange in France, where its shares closed at $7.55 on Tuesday. 3D said in its statement that the maximum price it will pay for its initial 80% stake in Phenix is 13 euros (about $17) per share. This suggests that negotiations as to price are still in progress, but that the maximum total price that might be paid for the first tranche of shares is $15.25 million. The total company value implied, therefore, is $19.06 million. Phenix Systems is currently unprofitable, cash flow-negative, and generated revenues of only $6.1 million over the past year.


Read/Post Comments (2) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On June 13, 2013, at 11:40 AM, jadkhawdn1897234 wrote:

    Isn't it at least somewhat worrisome that 3D just seems to buy every additive manufacturer in sight at lofty premiums?..where's the organic growth/can a company really be financially sound going forward just by being a serial acquirer?

    Thank you.

  • Report this Comment On June 13, 2013, at 2:09 PM, TMFDitty wrote:

    Depends on the company. Lifeway, yes. Worldcom, no. Nuance Comms -- TBD.

    But mostly, 3D has been buying up its own distributors lately. It's Stratasys that did the big inorganic buy. 3D's Phenix aquisition is penny ante in comparison.

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2486069, ~/Articles/ArticleHandler.aspx, 9/30/2016 8:19:42 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 11 hours ago Sponsored by:
DOW 18,143.45 -195.79 -1.07%
S&P 500 2,151.13 -20.24 -0.93%
NASD 5,269.15 -49.39 -0.93%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/29/2016 4:01 PM
DDD $17.66 Down -0.07 -0.39%
3D Systems CAPS Rating: ****