3D Systems Buys A Chunk Of Xerox For $32.5 Million
3D Systems has been on a roll over the past few years with it acquiring a number of 3D printer startups and technologies to bolster its own offerings. Now the company is going after a piece of one of the oldest technology firms around.
3D Systems announced today that it has purchased Xerox’ Wilsonville, Oregon product design, engineering and chemistry group. The group was purchased for $32.5 million in cash, and the deal is expected to be finalized before the end of the year.
Interestingly enough, this isn’t 3D Systems first time dealing with Xerox. In fact, the 3D printer company has partnered with Xerox over the past 15 years on a variety of projects, including the company’s own Projet 3D printers. With this acquisition, 3D Systems will add Xerox’ talent to its own by opening a R&D facility at the Wilsonville campus.
“We are pleased to expand our relationship with an innovative partner of the caliber of Xerox and expect that acquiring some of the Xerox Wilsonville engineering team, together with their state-of the-art development labs and selected licensed IP, will catapult our 3D printers’ development and manufacturing capabilities forward,” said Avi Reichental, 3D Systems’ President and CEO. “This bold step is consistent with our belief that we must act quickly and decisively to extend and cement our marketplace leadership position by taking full advantage of the window of unprecedented opportunity in front of us.”
With this announcement, some may be concerned that Xerox will abandon its current commitments to non-3D printing research. 3D Systems says that it will honor all existing commitments and Xerox will “maintain ink and print head development resources” at its Wilsonville facility. By keeping up the current research and spending more on 3D printers, 3D Systems expects to increase its research spending by 100 percent over the next few years.
“This deal takes advantage of Xerox’s world-class capabilities and expands our relationship with 3D Systems in the exciting and dynamic 3D printing industry,” said Kevin Warren, President of Xerox Strategic Growth Initiatives. “It emphasizes how we are leveraging our expertise while we continue to evolve our business model and pursue strategic growth opportunities.”
After the announcement, 3D Systems share price dropped .58 percent to 80.91. Xerox, on the other hand, saw its share price go up 1.22 percent to 11.63.
Image via 3D Systems