Stratasys Acquires Solid Concepts, Harvest Technologies

Stratasys has entered into definitive agreements to acquire two privately-held companies, Solid Concepts and Harvest Technologies.  Solid Concepts is the largest independent additive manufacturing service bureau in North America and a partner to RedEye, Stratasys’ existing digital manufacturing service business. The transactions are expected to be completed early in the upcoming third quarter, subject to customary closing conditions, and are expected to be accretive to Stratasys’ non-GAAP earnings per share within the first 12 months after closing.

Upon completion of the transactions, Stratasys will combine Solid Concepts and Harvest Technologies with RedEye to establish one additive manufacturing services business unit.  Joe Allison, president of Solid Concepts, will join the Stratasys management team and lead the combined parts business, supported by the management teams of Solid Concepts, Harvest Technologies, and RedEye.

According to the company, these acquisitions will provide Stratasys with “significant manufacturing and end-use parts production capabilities, infrastructure, capacity and process know-how, which are expected to accelerate and enable further adoption of additive manufacturing.”

Solid Concepts generated revenues of approximately $65 million in 2013. Under the terms of the agreement, Stratasys will acquire Solid Concepts for total consideration of up to $295 million, including a payment on closing of $172 million (or, if settled in cash, part on closing and part six months after closing), deferred payments of $60 million and up to $63 million in retention-related payments.

Stratasys will acquire Harvest Technologies for an undisclosed amount, including retention-related payments, payable in cash, shares or a combination thereof.

For more information, visit Stratasys, Solid Concepts and Harvest Technologies.

Sources: Press materials received from the company and additional information gleaned from the company’s website.