Origin’s resin-based Programmable
PhotoPolymerization (P3) technology expands Stratasys leadership in
the fast-growing market for 3D-printed mass production parts
Stratasys Ltd. (NASDAQ: SSYS) announced today it signed an
agreement to acquire 3D printing start-up Origin Inc. in a
transaction for total consideration of up to $100 million,
including cash and stock. The merger enables Stratasys to expand
its leadership through innovation in the fast-growing mass
production parts segment with a next-generation photopolymer
platform. Subject to various approvals and other closing
conditions, the acquisition is expected to close in January
2021.
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the full release here:
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Origin's 3D printers are particularly
well-suited to mass production of end-use parts, which is the
fastest growing segment of the 3D printing industry and a strategic
priority for Stratasys. (Photo: Business Wire)
Stratasys expects Origin’s proprietary Programmable
PhotoPolymerization (P3) technology to be an important growth
engine for the company, adding up to $200 million incremental
annual revenue within five years. The acquisition will help fortify
Stratasys’ leadership position in polymers and production
applications of 3D printing in industries such as dental, medical,
tooling, and select industrial, defense, and consumer goods
segments.
Under the terms of the agreement, the total consideration for
the transaction is comprised of $60 million paid on closing ($6
million of which is subject to the founders' retention over 3
years) and $40 million that is subject to performance-based
earnouts over 3 years. The acquisition will be paid using a
combination of stock of approximately $45 million and cash of
approximately $55 million at closing and throughout the earnout
period. Approximately $32 million of the cash expenditure will be
at closing. The acquisition is expected to accelerate Stratasys’
growth rate and be slightly dilutive to non-GAAP earnings per share
in 2021, and accretive to Stratasys' non-GAAP earnings per share by
2023. The Origin team will join Stratasys and lead the development
of its technology and product platform, with a full global launch
via the Stratasys go-to-market organization towards mid-2021.
“Our customers are looking for additive manufacturing solutions
that enable use of industrial-grade resins for mass production
parts with process and quality control,” said Stratasys CEO Yoav
Zeif. “We believe Origin’s software-driven Origin One system is the
best in the industry by combining high throughput with incredible
accuracy. When combined with Origin’s extensive materials ecosystem
and our industry-leading go-to-market capabilities, we believe we
will be able to capture a wide range of in-demand production
applications on a global scale. Together with our intended entry
into powder bed fusion technology, the acquisition of Origin
reflects another step in fulfilling our objective to lead in
polymer additive manufacturing by offering comprehensive,
best-in-class technologies and solutions to create a fully digital
additive value chain, designed for Industry 4.0 integration.”
According to an internal Stratasys market analysis,
manufacturing applications show the most potential for significant
growth in the 3D printing industry, reaching approximately $25
billion by 2025. Stratasys anticipates that production-oriented
resin-based solutions can address a significant part of the total
market for polymer additive manufacturing. In fact, it is estimated
that resin polymer-based additive systems will grow at a 20% annual
rate from 2020 to 2025.
Origin’s P3 technology, an advancement on Digital Light
Processing (DLP) principles, cures liquid photopolymer resin with
light. The company’s first manufacturing-grade 3D printer, Origin
One, precisely controls light, heat, and force, among other
parameters, via Origin's closed-loop feedback software. This new
technology enables customers to build parts with industry-leading
accuracy, consistency, size and detail, while using a wide range of
commercial-grade, durable resins.
Origin works with a network of material partners such as Henkel,
BASF and DSM to develop resins for its system. “We partnered and
developed materials with Origin before Origin One was launched
because we believed in their technology and vision for the future
of photopolymers in additive manufacturing,” said François Minec,
Managing Director at BASF 3D Printing Solutions GmbH. “Now, as part
of Stratasys, we’re confident that together we can take on the
broader manufacturing ecosystem.”
Origin One systems have been successfully deployed across a
variety of industries, including shoe manufacturer ECCO. “We’re
pleased to continue our cooperation with the Origin team as an
exclusive partner within the area of the footwear industry
categorized as Direct Injection Production, now also by leveraging
Stratasys’ global infrastructure,” said Jakob Møller Hansen, Vice
President Research & Development, ECCO.
The COVID-19 pandemic further illustrated Origin’s technology
fit for production applications, including hundreds of thousands of
clinically validated nasopharyngeal swabs, thousands of PPE face
shields, and ventilator splitters for hospitals.
“We founded Origin to create a whole new additive manufacturing
platform that enables mass production of end-use parts with
incredible accuracy, consistency, and throughput along with a wide
range of available materials,” said Origin CEO and co-founder
Christopher Prucha. “Stratasys is the best company for us to join
to achieve our vision, giving us an unparalleled opportunity to
significantly expand market reach and enable us to bring our P3
technology to a larger audience.”
Stratasys Ltd. Acquisition of Origin Conference Call
Details
Stratasys will hold a conference call to discuss the acquisition
of Origin on Wednesday, Dec. 9, at 8:30 a.m. EST.
The conference call will be available via live webcast on the
Stratasys website at investors.stratasys.com, or directly at the
following web address:
https://78449.themediaframe.com/dataconf/productusers/ssys/mediaframe/42481/indexl.html
Participants may join by phone by calling U.S. toll-free
1-877-407-0619 or international 1-412-902-1012. Listeners are
advised to dial into the call at least ten minutes prior to the
start time to register. The webcast will be available for six
months at investors.stratasys.com or by accessing the above web
address.
Based in San Francisco, Origin is pioneering a new
approach to additive manufacturing of end-use parts. Origin One,
the company’s manufacturing-grade 3D printer, uses Programmable
PhotoPolymerization to precisely control light, heat, and force,
among other variables, to produce parts with exceptional accuracy
and consistency. The company works with a network of partners to
develop a wide range of commercial-grade materials for its system,
resulting in some of the toughest and most resilient materials in
additive manufacturing. The company was founded in 2015 and is led
by alumni from Google and Apple. Investors include Floodgate, DCM,
Mandra Capital, Haystack, TDK Ventures, Stanford University, and
Joe Montana. Learn more at www.origin.io.
Stratasys is a global leader in additive manufacturing or
3D printing technology and is the manufacturer of FDM®, PolyJet
Technology™, and stereolithography 3D printers. The company’s
technologies are used to create prototypes, manufacturing tools,
and production parts for industries including aerospace,
automotive, healthcare, consumer products and education. For more
than 30 years, Stratasys products have helped manufacturers reduce
product-development time, cost, and time-to-market, as well as
reduce or eliminate tooling costs and improve product quality. The
Stratasys 3D printing ecosystem of solutions and expertise includes
3D printers, materials, software, expert services, and on-demand
parts production.
To learn more about Stratasys, visit www.stratasys.com, the
Stratasys blog, Twitter, LinkedIn, or Facebook. Stratasys reserves
the right to utilize any of the foregoing social media platforms,
including the company’s websites, to share material, non-public
information pursuant to the SEC’s Regulation FD. To the extent
necessary and mandated by applicable law, Stratasys will also
include such information in its public disclosure filings.
Stratasys, FDM, and PolyJet Technology are trademarks of
Stratasys Ltd. and/or its affiliates. Origin is a registered
trademark of Origin. All other trademarks are the property of their
respective owners, and Stratasys assumes no responsibility with
regard to the selection, performance, or use of these non-Stratasys
products.
Cautionary Statement Regarding Forward-Looking
Statements
The information contained in this press release may include
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995, Section 27A of the
Securities Act of 1933, and Section 21E of the Securities Exchange
Act of 1934. Forward-looking statements are often characterized by
the use of forward-looking terminology such as “may,” “will,”
“expect,” “anticipate,” “estimate,” “continue,” “believe,”
“should,” “intend,” “project” or other similar words, but may be
identified in other ways as well. These forward-looking statements
may include, but are not limited to, statements relating to the
anticipated completion of the acquisition of Origin by Stratasys,
Stratasys’ objectives, plans and strategies with respect to Origin
following its acquisition, statements that contain projections of
results of operations or of financial condition with respect to
Origin and Stratasys after the acquisition, and all statements
(other than statements of historical fact) that address activities,
events or developments that Stratasys intends, expects, projects,
believes or anticipates will or may occur in the future.
Forward-looking statements are not guarantees of future performance
and are subject to risks and uncertainties. Stratasys has based
these forward-looking statements on assumptions and assessments
made by its management and, in certain cases, by Origin’s
management in light of their experience and their perception of
historical trends, current conditions, expected future developments
and other factors they believe to be appropriate. Important factors
that could cause actual results, developments and business
decisions to differ materially from those anticipated in these
forward-looking statements include, among other things: any
potential obstacles to closing the acquisition of Origin; the
degree of success of Stratasys in efficiently and successfully
integrating the operations of Origin into Stratasys after the
acquisition; the general economic environment and the economic
environment for 3D printing and Stratasys’ customers in particular;
the impact of competition and new technologies; general market,
political and economic conditions in the countries in which
Stratasys operates, particularly in respect of the ongoing COVID-19
pandemic; government regulations and approvals; changes in
customers’ budgeting priorities; litigation and regulatory
proceedings; and those factors referred to under “Risk Factors”,
“Information on the Company”, “Operating and Financial Review and
Prospects”, and generally in Stratasys’ annual report on Form 20-F
for the year ended December 31, 2019 filed with the U.S. Securities
and Exchange Commission, or SEC, on February 26, 2020, and in other
reports that Stratasys furnishes to or files with the SEC from time
to time, including, most recently, the report of foreign private
issuer on Form 6-K reporting Stratasys’ results for the quarter and
nine months ended September 30, 2020, furnished to the SEC on
November 12, 2020. Readers are urged to carefully review and
consider the various disclosures made in Stratasys’ SEC reports,
which are designed to advise interested parties of the risks and
factors that may affect its business, financial condition, results
of operations and prospects. Any forward-looking statements in this
press release are made as of the date hereof, and Stratasys
undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law.
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Stratasys Corporate & North America
aaron.pearson@stratasys.com +1 612-716-9228
Europe, Middle East, and Africa Jonathan Wake /
Miguel Afonso, Incus Media stratasys@incus-media.com +44 1737
215200
Asia Pacific and Japan Alice Chiu
alice.chiu@stratasys.com +852 9189 7273
Investor Relations Yonah Lloyd yonah.lloyd@stratasys.com
+972-54-4382464
Brazil, Central America and South America
erica.massini@stratasys.com +55 (11) 2626-9229
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