3D Systems (NYSE:DDD) announced today it has purchased another firm, acquiring a distributor of scanning and 3-D printing products and Latin America's largest additive manufacturing service bureau, Robtec, for an undisclosed amount.
"We believe that the strong strategic and cultural fit between our companies, combined with Robtec's on-the-ground additive manufacturing service bureau capabilities, expanded channel coverage and deep automotive and aerospace customer relationships could present significant benefits for our customers, sizable growth opportunities for us and greater value for our shareholders," noted 3D Systems President and CEO Avi Reichental in the announcement of the acquisition.
The press release highlighted that Robtec is one of the leading technology resources to the manufacturing sector in Latin America for 3-D printing, and it has existing relationships with companies including Siemens, Volkswagen, Fiat, and Mercedes.
3D Systems notes it expects the acquisition will yield both strategic and financial benefits, and it expects it will increase its ability to generate cash and add to non-GAAP earnings per share within the first year of the completion of the acquisition. In addition, it highlighted it will result in a strategic sales and service platform in Latin America with an ability to hasten the implementation of the full suite of design-to-manufacturing products offered by 3D Systems.
"We are excited to become part of 3D Systems, a leading provider of the most complete portfolio of 3D content-to-print solutions available today," added the president of Robtec, which is based in Sao Paulo, Brazil, Pablo Elenter. "We plan to leverage our collective knowledge and experience for the benefit of our customers by building stronger local presence and immediately delivering the full range of 3DS products and services throughout the region."
Earlier this month, 3D Systems announced it would be acquiring Medical Modeling, which makes various medical solutions for surgical and other uses. The acquisition announced today is its 10th since August, and the seventh since December. This includes a $33 million acquisition of a unit from Xerox in addition to other purchases of private firms.
"This is the right time for us to add a company of Robtec's reputation, experience, growth record and scale in Latin America," Reichental concluded in his remarks. "With key operations in Brazil, Argentina, Chile, Uruguay and Mexico, proven service bureau operations and leading printing and scanning distribution activities, Robtec represents the cornerstone of our Latin American expansion plans."
The announcement today follows the news from earlier in the week that 3D Systems would be partnering with Staples to give Staples customers access to its 3-D printing at two stores.
Patrick Morris has no position in any stocks mentioned. The Motley Fool recommends 3D Systems. The Motley Fool owns shares of 3D Systems and Staples. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.