3D Systems Buying Phenix Systems
Jun 12th 2013 4:16PM
Updated Jun 12th 2013 5:35PM
3-dimensional printing pioneer 3D Systems grew its business 31% last quarter -- but it's not stopping there. On Wednesday, 3D announced it's planning to grow through acquiring Phenix Systems, a maker of direct metal selective laser sintering 3-D printers.
3D has signed an agreement to buy an 80% interest in France-based Phenix, which specializes in the additive manufacturing of metal and ceramic machine parts. The company's printers are capable of printing parts in stainless steel, tool steel, super alloys, non-ferrous alloys, alumina, and even in precious metals, for a variety of uses in the aerospace, automotive, and medical device industries.
After acquiring its initial 80% stake in July, 3D says it intends to make a takeover bid to acquire the remaining 20% of Phenix shares.
Phenix Systems is listed on the Alternext stock exchange in France, where its shares closed at $7.55 on Tuesday. 3D said in its statement that the maximum price it will pay for its initial 80% stake in Phenix is 13 euros (about $17) per share. This suggests that negotiations as to price are still in progress, but that the maximum total price that might be paid for the first tranche of shares is $15.25 million. The total company value implied, therefore, is $19.06 million. Phenix Systems is currently unprofitable, cash flow-negative, and generated revenues of only $6.1 million over the past year.
The article 3D Systems Buying Phenix Systems originally appeared on Fool.com.Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool recommends 3D Systems. The Motley Fool owns shares of 3D Systems and has the following options: Short Jan 2014 $36 Calls on 3D Systems and Short Jan 2014 $20 Puts on 3D Systems. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.