3D Systems Completes Buy of Software Firm
Feb 27th 2013 9:55AM
The largest of the 3D printing companies measured by market cap, 3D Systems Inc. (NYSE: DDD), said this morning that it has completed its $55 million acquisition of Geomagic, a software company that builds the tools that are used to create and design 3D content. 3D Systems said it expects Geomagic to contribute about $17 million to its 2013 revenues, which would lift the company's revenue guidance for the year to a new range of $457 million to $502 million.
3D printing has grabbed a lot of attention recently, and equipment makers 3D Systems, Stratasys Ltd. (NASDAQ: SSYS) and ExOne Co. (NASDAQ: XONE), as well as service provider Proto Labs Inc. (NYSE: PRLB), all trade at forward multiples of around 25 or more. (ExOne just came public and has no earnings so far.)
The consensus estimate for 3D Systems' 2013 revenues had been $453 million, so today's announcement from the company should boost that to around $470 million. It would be surprising if the estimate failed to get a bigger boost than that, given the investor spotlight on 3D printing.
Shares of 3D Systems are up 1.2% in early trading this morning, at $35.53 in a 52-week range of $13.93 to $47.99. The 52-week high was set in late January, and the pullback from that high began in earnest following the ExOne initial public offering.
Filed under: 24/7 Wall St. Wire, Industrials, Software Tagged: DDD, featured, PRLB, SSYS, XONE