3D-printing giant Stratasys, Ltd. (NASDAQ:SSYS) announced a definitive agreement today to acquire GrabCAD, Inc. in an all-cash transaction in a sign of accelerated adoption of 3D printing. Terms of the deal were not disclosed.
Enhanced collaborative tools for customers
As part of the acquisition deal, GrabCAD will operate as a unit within the Stratasys Global Products and Technology Group. The deal is anticipated to be completed by the end of September, subject to fulfilling customary closing conditions.
Stratasys, Ltd. (NASDAQ:SSYS)’s acquisition will facilitate its customers with enhanced collaboration tools and improved accessibility relating to 3D CAD content. The acquisition will provide Stratasys with a leading cloud-based collaboration platform for engineering teams to manage, share and view CAD files. Such an enhancement will accelerate the adoption of 3D printing solutions and Stratasys’ product offerings.
The acquisition will enable Stratasys to take advantage of GrabCAD’s cloud-based collaboration platform, Workbench, and will allow Minneapolis-based company to offer customers a solution to drive communication and ease of use throughout the design and 3D printing process. The 3D-printing giant will also gain from GrabCAD’s fast-growing community of mechanical engineers and designers, as well as a large online community of M-CAD users and a substantial public online repository of free CAD files.
Stratasys’ string of acquisitions
In July, Stratasys, Ltd. (NASDAQ:SSYS) announced its completion of the acquisition of Solid Concepts, a large additive manufacturing service bureau. In April, the firm also reached a deal to buy Harvest Technologies.
While unveiling its second quarter results in August, Stratasys has enhanced its guidance for the full fiscal year as the outlook for the rest of the year has improved and it is accounting for the recent acquisitions of Harvest Technologies and Sold Concepts. The company also provided an update to its long-term operating model, by projecting at least 25% growth compared to the previous expectation of at least 20% growth.
The latest acquisition seems to be a good fit for Stratasys, Ltd. (NASDAQ:SSYS). The acquisition of GrabCAD is a way for Stratasys to both take control of a growing CAD modeling marketplace as well as acquiring the immense human talent of the company.
GrabCAD was launched as part of the TechStars Boston cohort in 2011, but has raised only around $13.6 million from investors including Charles River Ventures, David Sacks, Matrix Partners and Atlas Venture todate. Vertically-focused social networks have been gaining attention from some VCs and others highlighting the maturation in social media, and less desire for catch-all, huge communities and more desire for targeted and focused experiences.