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3D Printing Companies ArcamAB

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.”

http://www.bloomberg.com/news/2013-06-25/stratasys-plans-purchases-for-3-d-printing-using-metals.html

 

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.

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

5 thoughts on “Bold Prediction: Stratasys (SSYS) Will Buy Arcam AB (AMAVF)

  1. Hi Gary,
    I can completely follow your thoughts. I also think Arcam will be bought very soon. Just not sure by whom……..

    • Well, we’ll see at some point. I think the two would make a great fit- so some of it is wishful thinking on my part, but some of it is well-reasoned at least to me…

  2. So the next Question is: how high will the premium be. I guess it will be 60 per cent

  3. Hi Stacey,

    Well, I think SSYS could do it with cash and shares if they want to. And I’m not sure the governments of the EU could stop a publicly traded company from merging or being acquired by a global corporation, even if they funded some of their research. The US funded about $250M of research to A123 Battery, and that company (and their technology) went to China, and I think it can happen in Sweden also- even if certain government officials aren’t supportive of it.

    As for Magnus Rene and the Arcam team not being for sale- you could be completely right.

    I’m just speculating anyway- and could be way off the mark. We’ll see.

    Thanks for your comments,

    Gary

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