3D Systems Buys RPDG

By Rich Smith – May 1, 2013 at 4:32PM

Company implies that deal will boost sales and earnings as early as this year.

In a move aimed at expanding its ability to manufacture machine parts on-demand, three-dimensional "printing" company 3D Systems (DDD 5.57%) has acquired privately held, Escondido, California-based Rapid Product Development Group for an undisclosed sum.

3D announced the acquisition Wednesday, saying it plans to integrate RPDG into its "Quickparts" business. While not saying so outright, 3D implied that the deal will begin boosting sales and adding to profits in short order, raising its revenue guidance to $460 million to $510 million, and its earnings guidance to $1.05 to $1.20 per share "in connection with the acquisition."

Regardless, investors reacted negatively to the news, bidding down 3D shares by 1.4% in Wednesday trading, to close at $37.71.

Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool recommends 3D Systems. The Motley Fool owns shares of 3D Systems and has the following options: Short Jan 2014 $36 Calls on 3D Systems and Short Jan 2014 $20 Puts on 3D Systems. 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.