As many who follow Stratasys (SSYS) know, the company has now secured MakerBot, placing the company firmly into the personal 3D printing consumer market.
But the big growth in 3D printing is projected to be in high-grade metals...and not for just rapid prototyping, but for larger scale industrial production.
They (Stratasys) are now engaging in a follow-on offering to sell 4.0 million shares of common stock to raise $409 million in new capital.
I believe they will use the majority of these new funds for an acquisition, and it’s no secret Stratasys has been looking to add to their current plastics-dominated 3D printing offerings by expanding into a metals focus.
Scott Crump: “Because there is so much opportunity we also will selectively grow though M&A. We have an organic project to get Stratasys into additive metal. It’s rational to say that through M&A we want to expand with different technology on a dual path.”
I am predicting here and now, on 9/11/2013, that I believe Stratasys is looking to acquire Swedish 3D metals printing company Arcam AB (AMAVF) and (ARCM.ST on the NASDAQ OMX), along with their patented Electron Beam Melting (EBM) technology. The current market cap of Arcam AB is $420M, so any acquisition or merger, should it happen, would require cash from the follow-on offering, almost certainly shares, and potentially some debt by Stratasys.
I believe EBM technology is probably as attractive to Stratasys as it is PricewaterhouseCoopers: http://3dprintingstocks.com/3d-printing-and-ebm-electron-beam-melting/ and I also believe Arcam would be a great fit for Stratasys.
Disclosure: I own shares in both companies and am happy if I am proven to be correct, or if Stratasys has another acquisition target in mind, or none at all at.
I am also not publishing this to create a rumor that might increase the share price of Arcam AB, and frankly I don’t think my web site has that type of influence anyway.
I just want to be the first to call it as I haven’t seen any industry analyst make this prediction yet, so I thought I’d jump out and make it myself.
Finally, I am not advising anyone to buy, sell, or hold Arcam AB or Stratasys shares based on my personal views expressed here.
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Gary Anderson……..Follow me on Twitter: @3DPrintingStock