Israeli polymer 3D printing solutions developer Stratasys (Nasdaq: SSYS) announced today it has signed a definitive agreement to acquire German additive materials company Covestro AG (DAX: 1COV). Stratasys will pay €43 million and up to an additional €37 million in performance payments.
The acquisition includes R&D facilities and activities, global development and sales teams across Europe, the US and China, a portfolio of 60 additive manufacturing materials, and an extensive IP portfolio comprised of hundreds of patents and patents pending. The acquisition is expected to be immediately accretive upon closing.
Covestro has already been an important part of Stratasys’ third-party materials ecosystem, and the acquisition will benefit customers using multiple Stratasys 3D printing platforms. Stratasys is already a distributor of Covestro’s Somos resins and they are already available for Neo and Origin One 3D printers.
Stratasys CEO Dr. Yoav Zeif said, "Innovative materials are the fuel of additive manufacturing and translate directly into the ability to create new use cases for 3D printing, particularly in the production of end-use parts like dental aligners and automotive components. The acquisition of Covestro’s highly regarded Additive Manufacturing business positions us to further grow adoption of our newest technologies. We will now have the ability to accelerate cutting-edge developments in 3D printing materials, and advance our strategy of providing the best and most complete polymer 3D printing portfolio in the industry."
The majority of Covestro's employees will continue to be based in Geleen, Netherlands and Elgin, Illinois in the US.
Stratasys's share price fell 2.24% yesterday to $18.74, giving the company a market cap of $1.251 billion. At the end of the second quarter, Stratasys had $438 million cash in its coffers.
Published by Globes, Israel business news - en.globes.co.il - on August 8 2022.
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