3D Systems Corporation (NYSE:DDD) announced Tuesday that it has completed the acquisition of Brazilian additive manufacturing service bureau Robtec. The South Carolina-based 3D printing company has renamed Robtec as 3D Systems Latin America. It has presence in Brazil, Mexico, Chile and Uruguay. The Brazilian company provides custom manufacturing and rapid prototyping services to companies like Fiat, Siemens, Volkswagen and Mercedes.
Robtec the cornerstone of 3D Systems’ Latin America strategy
3D Systems had announced the acquisition in April this year. It purchased a 70% stake in Robtec and now expects the remaining stake to be transferred from Robtec to 3D Systems on the fifth anniversary of the deal’s completion. 3D Systems CEO Avi Reichental said that the acquisition was the cornerstone of the company’s expansion strategy for Latin America.
Reichental said Robtec’s expanded channel coverage and strong relationships with automobile and aerospace customers present “sizable growth opportunities” for 3D Systems. The Rock Hill-based company has been on an aggressive acquisition spree. In August, it acquired sister rapid prototyping companies APM and APP. In September, 3D Systems purchased LayerWise, a Belgium-based direct metal 3D printing company.
3D Systems buys Cimatron
Earlier this week, 3D Systems announced that it would acquire Israel-based Cimatron Ltd. (NASDAQ:CIMT) for $97 million, or a 47.5% premium to Cimatron’s price before the deal was made public. Cimatron makes CAD/CAM software. It will strengthen 3D Systems’ position in 3D manufacturing and design business, and will add complementary products to 3D Systems’ portfolio.
Avi Reichental said the Cimatron acquisition will be accretive to the company’s earnings immediately after closing. The companies expect to close the deal in the first quarter of 2015, depending on regulatory approval and customary closing conditions. Goldman Sachs analyst Samuel Eisner said in a research note that the acquisition would push 3D Systems further into software. The transaction will also expand its presence in Europe.
3D Systems shares fell 0.33% to $36.75 in pre-market trading Wednesday.