Some companies grow organically and some by acquisition. 3D Systems does it both ways. Surely one of the most acquisitive companies I’ve ever seen, the world’s second largest 3D printer manufacturer has announced yet another company it is scooping up — Geomagic, Inc. I’ve lost count, but I believe this is about the 25th acquisition it has made in the last 2-3 years. Often, the purchase of a company reduces the net earnings of the acquiring company for a time, but if my memory serves me, mosl of 3D Systems’ acquisitions were said to have been accretive to the bottom line. And this looks to be no exception, as it’s projected to add to earnings within one year of completing the deal.
Geomagic is a leading global provider of 3D authoring solutions including design, sculpt and scan software tools that are used to create 3D content and inspect products throughout the entire design and manufacturing process. The company also produces haptic devices that simulate the sense of touch in a digital environment (which Geomagic only months ago acquired when they bought Sensable). Applications of Geomagic’s software include products in the medical, dental, and biomechanical, as well as engineering industries, and will further advance 3D Systems’ position in the industrial 3D printer arena.
As part of the deal, Geomagic’s CEO Ping Fu will join 3D Systems as Chief Strategy Office. Commenting on the deal, she said “We have worked with 3D Systems for many years to accelerate adoption of 3D content-to-print solutions and believe that now is the right time to combine our efforts to further democratize access to design and 3D printing. Joining 3D Systems provides us with the scale, resources and strategic platform to realize our shared vision of delivering functional, affordable and extensible 3D authoring solutions for the benefit of professional designers and engineers, as well as the exciting maker’s movement.”
Abe Reichental, President and CEO of 3D Systems also weighed in, saying, “Geomagic represents the perfect strategic fit for us and we will be thrilled to welcome 3D pioneer and Geomagic Founder and CEO Ping Fu as our Chief Strategy Officer once the deal has closed. Our complementary capabilities in product development, channel coverage and marketing combined with greater efficiencies are sure to result in more affordable and user friendly solutions that will delight our customers and could present attractive long term shareholder value. In line with that, we intend to expand the range of our 3D authoring solutions further into new manufacturing and consumer applications and concurrently maintain and enhance the existing Geomagic and Rapidform product lines.”