Stratasys acquires 3D printing startup Origin for $100 million
Stratasys said Wednesday that it will acquire 3D printing startup Origin in a $100 million cash and stock deal. Stratasys is aiming to use Origin's photopolymer platform and extensive materials ecosystem to expand into the mass production parts segment, which uses 3D printing for significant manufacturing applications.
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Stratasys said Origin's proprietary Programmable PhotoPolymerization (P3) technology will become a key growth engine for the company, adding up to $200 million incremental annual revenue within five years. The acquisition will also bolster Stratasys' position in polymers and production applications of 3D printing, which is commonly used in industries such as dental, medical and tooling.
Stratasys said the Origin team will lead the development of its technology and product platform, with a full global launch via the Stratasys go-to-market organization towards mid-2021.
"We believe Origin's software-driven Origin One system is the best in the industry by combining high throughput with incredible accuracy. said Stratasys CEO Yoav Zeif. "Together with our intended entry into powder bed fusion technology, the acquisition of Origin reflects another step in fulfilling our objective to lead in polymer additive manufacturing by offering comprehensive, best-in-class technologies and solutions to create a fully digital additive value chain, designed for Industry 4.0 integration."
Stratasys' long-term strategy revolves around polymers, as the company aims to offer polymer systems, materials, software and services to offset declines in the industrial sector during the COVID-19 pandemic. The company conducted internal maket analysis and posits that manufacturing applications in the 3D printing industry will grow to $25 billion by 2025, with resin polymer-based additive manufacturing contributing a significant part of the total market.