3D Systems will acquire part of the OEM’s solid ink engineering and development teams to strengthen both companies in the 3D printing field.
The Wall Street Transcript reported on the two companies’ strategy to “accelerate growth and cement leadership positions” in the 3D printing market, with 3D Systems (3DS) entering an agreement to acquire Xerox’s Wilsonville, Oregon product design, engineering and chemistry group, along with related assets of $32.5 million (€23.8 million) in cash.
The transaction is expected to be finalised before the end of this year and expands upon over a decade of collaboration between the two companies, which saw the production of 3DS’ ProJet series of 3D printers.
3DS expects to add more than 100 Xerox engineers and contractors specialising in product design and materials science to its R&D team and will immediately operate its own facility within Xerox’s Wilsonville site, expecting to increase its annual R&D expenditures by between 75 and 100 percent over the coming years
Meanwhile, Xerox will maintain ink and print head development resources as well as research relevant to digital printing and 3D markets.
Commenting on the agreement, Avi Reichental, President and CEO of 3DS, said: “We are pleased to expand our relationship with an innovative partner of the calibre of Xerox and expect that acquiring some of the Xerox Wilsonville engineering team, together with their state-of the-art development labs and selected licensed IP, to catapult our 3D printers’ development and manufacturing capabilities forward.
“This bold step is consistent with our belief that we must act quickly and decisively to extend and cement our marketplace leadership position by taking full advantage of the window of unprecedented opportunity in front of us […] The stronger our marketplace leadership, the more powerful our economic model becomes. Simply put, a solidified position translates directly to higher revenue, higher profitability and greater earnings power over time and we are willing to sacrifice short term earnings to get there faster.”
Speaking on behalf of Xerox, Kevin Warren, President of Xerox Strategic Growth Initiatives, said: “This deal takes advantage of Xerox’s world-class capabilities and expands our relationship with 3D Systems in the exciting and dynamic 3D printing industry. It emphasises how we are leveraging our expertise while we continue to evolve our business model and pursue strategic growth opportunities.”