Shares of 3D Systems Corporation (DDD) gained 3.6% after the company announced its acquisition of Columbus based Laser Reproductions, leading provider of services for rapid prototyping, manufacturing, product development and stereolithography. The acquisition announced on Aug 6 will enhance 3D Systems’ Quickparts Solutions business in the U.S.
Laser Reproductions possesses prolific experience in advanced manufacturing services stretched over three decades. Apart from infrastructure to support high production volumes, the company boasts of strong relationships with a number of blue chip firms in the region.
3D Systems has been leveraging its robust financial position to broaden its presence in the materials, medical and metal industries. In the recently reported second quarter results, despite a number of acquisitions the company saw strong year-over-year growth in both cash and cash equivalents and operating cash flow. Though the company has kept the financial terms of the transaction under covers, the deal is likely to be significantly beneficial to its business.
Quickparts Solutions offers speedy and customized manufacturing of complex prototypes of parts in both plastic and metal.This apart, the company provides relevant production tooling and part options for a smooth transformation from prototyping to the production phase. 3D Systems’ is likely to gain substantially from Laser Reproductions’ advanced production capabilities. This along with its strong networks comes as a positive. Laser Reproductions will perfectly complement Quickparts Solutions to drive growth in its on-demand, quick-turn cloud manufacturing offerings while expanding it further in North America.
Further, the acquisition of Laser Reproductions, being immediately accretive to 3D Systems is expected to add to its non-GAAP earnings within a year.
In the past quarter, the company announced a number of acquisitions including Medical Modeling and Robtec. Most recently, the company announced a $120 million acquisition of Simbionix.
This Zacks Rank #3 (Hold) company is not only driving growth through strategic acquisitions but is also investing continuously in research and development (R&D) for sustainable long-term growth.