When Stratasys (NASDAQ: SSYS) bought MakerBot for $403 million in stock, and potentially another $201 million if it hits performance incentives, investors were left wondering why Stratasys would be willing to fork over $600 million in equity for a company that only earned a combined $27.2 million in revenue since the beginning 2012 through the first quarter of this year. Motley Fool contributor Steve Heller believes the steep price tag can be attributed not only to MakerBot's early adopter culture, but also a significant upcoming development for the 3-D printing industry, the expiration of key laser sintering patents.
Come February of next year, these patents held by 3D Systems will expire, opening up an opportunity for MakerBot to release a laser sintering line of 3-D printers. Check out the video below to get the full story.
Fool contributor Steve Heller owns shares of 3D Systems. The Motley Fool recommends 3D Systems and Stratasys. The Motley Fool owns shares of 3D Systems and Stratasys and has the following options: short January 2014 $36 calls on 3D Systems and short January 2014 $20 puts on 3D Systems. 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.
More from The Motley Fool
Why Shares of Stratasys Ltd. Popped 21% in 2017
In an up-and-down year for Stratasys Ltd., there were enough positives for investors to send shares higher for the year.
GE, Adidas, and Others to Pour $200 Million Into Hot 3D Printing Start-Up Carbon
Watch out, 3D Systems and Stratasys: This Silicon Valley-based 3D printing company has now raised $422 million and is reportedly valued at a whopping $1.7 billion.
Will 2018 Be Stratasys Ltd.'s Best Year Yet?
Stratasys Ltd. may be on the road to recovery, but that doesn't mean 2018 will be an outstanding year.