3-D printer maker Stratasys to acquire desktop rival MakerBot

MakerBot will operate as a separate subsidiary with its own brand and management

3-D printer company Stratasys is acquiring desktop 3-D printer maker MakerBot for over US$400 million in an all-stock deal, to shore up its consumer presence.

Privately-held MakerBot has sold more than 22,000 3-D printers since it was founded in 2009, and its printers are increasingly used by a class of "prosumers" that includes individuals using the devices for professional purposes as well as for personal applications, Stratasys said in a statement Wednesday.

MakerBot has also set up a portal Thingiverse.com for the sharing of user-generated digital design content to promote system usage. The portal has more than 90,000 3-D product files available for sharing, and generates more than 500,000 unique visitors and 1 million downloads each month, Stratasys said.

In the transaction, Stratasys will initially issue about 4.76 million shares in exchange for 100 percent of the outstanding capital stock of MakerBot in Brooklyn, New York. The proposed merger has an initial value of $403 million based on Stratasys' closing stock price of $84.60 as of Wednesday. MakerBot shareholders are also entitled to performance-based payouts of more shares or cash.

The MakerBot business will operate as a separate subsidiary, with its existing brand and management. Bre Pettis, CEO and co-founder of MakerBot, will continue to head the operation.

The companies have estimated that between 35,000 to 40,000 desktop 3-D printers were sold in 2012, which is expected to double this year, as prosumers increasingly adopt desktop 3-D printers for a broad range of applications. MakerBot generated $11.5 million in total revenue in the first quarter of 2013 compared to $15.7 million for all of 2012.

Stratasys, with dual headquarters in Minneapolis, Minnesota, and Rehovot, Israel, was formed in 2012 by the merger of 3-D printing companies Stratasys and Objet. It manufacture 3-D printers and materials for prototyping and production. MakerBot recently opened a new manufacturing facility in Brooklyn.

3-D printing, which has a variety of applications, recently came to the attention of some U.S. legislators who want to regulate the use of the devices to print firearms. An organization Defense Distributed fired in early May a handgun made with 3-D printing technology, and said it would distribute its drawings online. It later brought down the files on orders of the U.S. State Department, but not before the drawings were downloaded by a large number of people.

John Ribeiro covers outsourcing and general technology breaking news from India for The IDG News Service. Follow John on Twitter at @Johnribeiro. John's e-mail address is john_ribeiro@idg.com

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags peripheralsbusiness issuesPrintersStratasysMakerBotMergers and acquisitions

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

John Ribeiro

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?