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.

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  • Report this Comment On June 13, 2013, at 11:40 AM, Wiseinvestors 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.

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