When Stratasys (NASDAQ:SSYS) announced its plans to purchase 3-D printing service provider Solid Concepts for $295 million, I argued that the move underscores Stratasys' desire to secure 3-D printing expertise and diversify away from its 3-D printing product portfolio, which may face issues with potential pressure on pricing in the future. Now that the deal has officially closed, Stratasys investors should spend some time getting more acquainted with Solid Concepts. After all, the company generated $65 million in revenue last year, representing 9.5% of Stratasys' expected revenue this year.
In the following video, 3-D printing specialist Steve Heller asks Scott McGowan, vice president of marketing at Solid Concepts, to provide an overview of the company that Stratasys purchased. Going forward, Stratasys investors should expect that 3-D printing services will become an increasingly more important aspect of Stratasys' business in terms of revenues and also lead generation.