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Hexagon to Aquire 3D Systems Software Suite

The deal is expected to close in the 2023 calendar year.

Introduction

The world of 3D printing and scanning has witnessed significant advancements in recent years, with companies like 3D Systems and Hexagon AB leading the charge.

3D Systems has been struggling financially, and the company’s stock price has plummeted in recent months. The company’s stock price has dropped by 70% in the last year alone, making it one of the worst-performing stocks in the 3D printing industry.

The Financial Struggles of 3D Systems

3D Systems has been facing significant financial challenges in recent years. The company’s stock price has been declining steadily, and its cash reserves have been dwindling. In its latest earnings report, 3D Systems revealed that it had spent nearly half of its cash reserves on operations and restructuring. This is a concerning trend, as it suggests that the company is struggling to manage its finances effectively.

Key Financial Metrics

  • Cash Reserves: $190 million at the end of September (down from $331 million at the start of the year)**
  • Revenue Growth: -10% year-over-year (down from 10% in the previous year)**
  • Net Loss: $8 million (up from a net loss of $8 million in the previous year)**

    • The Impact of Restructuring

    3D Systems’ decision to spend nearly half of its cash reserves on operations and restructuring is a clear indication that the company is undergoing significant changes. This restructuring effort aims to improve the company’s financial performance and position it for long-term success.

    Restructuring Efforts

  • Cost-Cutting Measures: The company has implemented various cost-cutting measures, including reducing its workforce and eliminating non-essential expenses.

    Hexagon strengthens its 3D content creation capabilities with strategic acquisition of Geomagic.

    The Acquisition of Geomagic

    In 2018, Hexagon AB made a strategic acquisition of Geomagic, a leading provider of 3D content creation software. This move marked a significant milestone in Hexagon’s expansion into the 3D content creation market. The acquisition aimed to strengthen Hexagon’s position in the market and provide customers with a comprehensive suite of solutions for 3D content creation and management. Key benefits of the acquisition include: + Enhanced 3D content creation capabilities + Increased market share in the 3D content creation market + Improved customer experience through a more comprehensive suite of solutions + Opportunities for growth and expansion into new markets

    The Geomagic Software

    Geomagic software is a suite of 3D content creation tools that enable users to create, edit, and manage 3D models.

    3D Systems and Hexagon will form a new company, which will be called 3D Systems Corporation.

    The Acquisition of 3D Systems by Hexagon

    The acquisition of 3D Systems by Hexagon is a significant development in the additive manufacturing industry. The deal, which is expected to be completed in the first half of 2025, will create a new company called 3D Systems Corporation.

    Key Highlights of the Acquisition

  • The acquisition will create a global leader in additive manufacturing, with a combined market value of over $10 billion. The deal will bring together two companies with complementary strengths, including 3D printing technology, software, and services. The acquisition is expected to drive innovation and growth in the additive manufacturing industry, with a focus on developing new products and services. ### Benefits of the Acquisition*

    • Benefits of the Acquisition

    The acquisition of 3D Systems by Hexagon is expected to bring numerous benefits to both companies. Some of the key benefits include:

  • Increased market share: The combined company will have a significant market share in the additive manufacturing industry, allowing it to better compete with other players. Improved product offerings: The acquisition will bring together the strengths of both companies, resulting in a wider range of products and services. Enhanced innovation: The combined company will have the resources and expertise to drive innovation in the additive manufacturing industry.

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