Stratasys will pay up to $295 million for Solid Concepts, including $172 million up front and up to $123 million in delayed payments. It did not disclose the details of the Harvest Technologies deal. The acquisition is expected to be completed early in the third quarter of 2014, according to a post by Harvest Technologies president David Leigh.
Stratasys will combine the two companies with RedEye, its on-demand printing service that targets industry. Unlike desktop printers, which generally cost several thousand dollars, large professional printers can cost up to $1 million or more, making it appealing for companies to outsource printing jobs instead of investing in their own printer. Companies generally use services like RedEye for prototyping or to manufacture small batches of highly-customized parts.
Solid Concepts and Harvest Technologies both provide similar services to RedEye, and have experience in producing parts for the aerospace, automotive and medical fields. They may also help RedEye to begin offering selective laser sintering printing, a technology that fuses particles together with a laser to create an object, which is generally dominated by Stratasys rival 3D Systems.
Solid Concepts, which recently made headlines for 3D printing a metal gun, generated $65 million in revenue last year. Stratasys describes it as the largest independent 3D printing service provider in North America. Harvest Technologies’ annual revenue was not disclosed. Both teams will be absorbed into RedEye.