3D Systems completes the acquisition of Z Corp and Vidar 04 January 2012
3D Systems Corporation announced today that it has completed the acquisition of Z Corporation (“Z Corp”) and Vidar Systems (“Vidar”) for $135.5 million in cash, net of cash received and subject to final closing adjustments, from Contex Group, a subsidiary of Ratos AB, a listed private equity company located in Stockholm, Sweden.
The company also announced that earlier today it consolidated its entire personal and professional 3D printer businesses into a single unit under the leadership of John Kawola, former Z Corp CEO who was named 3D Systems Vice-President and General-Manager, Personal and Professional 3D Printers business unit. The company affirmed its plans and expectations to deliver combined revenue and cost synergies in the range of $5-10 million dollars in 2012 and reiterated its expectation to incur incremental fourth quarter 2011 acquisition costs in the range of $2.7 to $3.2 million.
This acquisition integrates Z Corp and Vidar products and services with 3D Systems’ extensive portfolio, uniquely positioning 3D Systems for accelerated growth in the dynamic, rapidly expanding 3D content-to-print space. The transaction completes 3D Systems’ range of product capabilities, fills price gaps with complementary products and technology and doubles its reseller coverage globally. The Company expects the acquisition of Z Corp and Vidar to be immediately accretive to its cash generation and to its Non-GAAP earnings in the first full year following completion of this transaction.
“This is a historic, game-changing event for our customers and stockholders. Today we gained complementary full color and high speed printing technology, increased our marketplace presence significantly in verticals beyond product development and direct manufacturing, assembled the largest and most-well prepared reseller channel in 3D printing, and catalyzed our healthcare solutions business,” said Abe Reichental, President and CEO of 3D Systems. “Concurrent with the completion of this transaction today, we have taken immediate, decisive steps to unleash the combined revenue growth potential and deliver the value creation inherent in this acquisition for the benefit of customers and shareholders alike.”