3D Systems Buying Phenix Systems
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.
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