The combination of Geomagic’s powerful sculpting, modeling, scanning and inspecting software tools with 3D Systems’ portfolio strengthens its 3D authoring platform and positions the company for accelerated growth in the fast-growing, 3D content-to-print space. The transaction adds complementary products and technology, increases the company’s reseller coverage globally and is expected to be accretive to its non-GAAP earnings in the first full year following the completion of transaction.
“Geomagic represents the perfect strategic fit for us and we are thrilled to welcome 3D pioneer and Geomagic founder and CEO Ping Fu as our Chief Strategy Officer,” said Abe Reichental, president and CEO, 3D Systems. “Our complementary capabilities in product development, channel coverage and marketing combined with greater efficiencies are sure to result in more affordable and user friendly solutions that will delight our customers and could present attractive long term shareholder value. In line with that, we intend to expand the range of our 3D authoring solutions further into new manufacturing and consumer applications and concurrently maintain and enhance the existing Geomagic and Rapidform product lines.”
“We have worked with 3D Systems for several years to accelerate adoption of 3D content-to-print solutions and believe that now is the right time to combine our efforts to further democratize access to design and 3D printing,” said Ping Fu.
The company cites the following strategic and financial benefits:
- Growing reseller channel accelerates revenue growth from combined portfolio and presence.
- Profitable razor and blades business with accretive software gross profit margins enhances non-GAAP earnings power.
- Highly complementary portfolio delivers powerful and affordable design and manufacturing solutions and greater customer value .
- Expected to be accretive to non-GAAP earnings in the first full year following completion of transaction.
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