January 4, 2012
By DE Editors
3D Systems has completed the acquisition of Z Corporation and Vidar Systems for $135.5 million in cash, net of cash received and subject to final closing adjustments, from Contex Group, a subsidiary of Ratos AB.
The company also announced that it has consolidated its entire personal and professional 3D printer businesses into a single unit under the leadership of John Kawola, former Z Corp CEO, who was named 3D Systems vice president and general manager, Personal and Professional 3D Printers business unit. The company affirmed its plans and expectations to deliver combined revenue and cost synergies in the range of $5-10 million dollars in 2012 and reiterated its expectation to incur incremental fourth quarter 2011 acquisition costs in the range of $2.7 to $3.2 million. The company expects the acquisition of Z Corp and Vidar to be immediately accretive to its cash generation and to its Non-GAAP earnings in the first full year following completion of this transaction.
“This is a historic, game-changing event for our customers and stockholders. Today we gained complementary full color and high speed printing technology, increased our marketplace presence significantly in verticals beyond product development and direct manufacturing, assembled the largest and most-well prepared reseller channel in 3D printing, and catalyzed our healthcare solutions business,” said Abe Reichental, president and CEO of 3D Systems. “Concurrent with the completion of this transaction today, we have taken immediate, decisive steps to unleash the combined revenue growth potential and deliver the value creation inherent in this acquisition for the benefit of customers and shareholders alike.”
For more information, visit 3D Systems.
Sources: Press materials received from the company and additional information gleaned from the company’s website.