Stratasys has announced the acquisition of Solid Concepts and Harvest Technologies in order to boost order rates and sale of 3D printed parts.
U.S.-based Solid Concepts and Harvest Technology focus on rapid prototyping and custom printing within the additive manufacturing industry. The companies have experience producing parts in the medical and aerospace fields.
The firm will pay up to $295 million for Solid Concepts, including $123 million in payment at closing. The details concerning the purchase of Harvest Technologies were not disclosed, but it is expected to be completed in Q3 2014.
Solid Concepts is a partner of Stratasys-owned RedEye, a business which offers a print on-demand service for the corporate world. Stratasys plans to combine the services of both new acquisitions with RedEye in order to establish a singular additive manufacturing services business unit, which will help the firm cope with rising consumer demand.
3D printers suitable for commercial use require heavy investment, and so outsourcing these jobs has proven popular for firms unwilling to purchase their own equipment -- whether they wish to print a prototype products or create customized parts in batches.
Stratasys calls the companies "leading providers of additive manufacturing services," and says that the deals will provide Stratasys with additional production capabilities, capacity and a talent pool.
Solid Concepts accounts for roughly 450 employees, whereas the smaller company, Harvest Technologies, has 80 staff on the books.
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Image credit: Stratasys
This post was originally published on Smartplanet.com