SAN FRANCISCO—Stratasys Ltd. is acquiring fellow 3D printing company Origin Inc. in a $100 million cash-and-stock deal.
The move gives Stratasys an ability to further serve "the fast-growing mass production parts segment with a next-generation photopolymer platform," the company said.
Origin's Programmable PhotoPolymerization, or P3, technology is viewed as a key part of the deal as Stratasys expects to add up to $200 million in annual revenue within five years.
The acquisition will "fortify" Stratasys' position serving segments including dental, medical, tooling, industrial, defense and consumer goods.
"Our customers are looking for additive manufacturing solutions that enable use of industrial-grade resins for mass production parts with process and quality control," Stratasys CEO Yoav Zeif said in a statement. "We believe Origin's software-driven Origin One system is the best in the industry by combining high throughput with incredible accuracy."
"The acquisition of Origin reflects another step in fulfilling our objective to lead in polymer additive manufacturing by offering comprehensive, best-in-class technologies and solutions to create a fully digital additive value chain, designed for Industry 4.0 integration," he said.
P3 technology cures liquid photopolymer resin using light. The company's Origin One 3D printer controls light, heat and force to build parts with accuracy and consistency and can use different commercial grade durable resins, the company said.
"We founded Origin to create a whole new additive manufacturing platform that enables mass production of end-use parts with incredible accuracy, consistency, and throughput along with a wide range of available materials," Origin CEO Christopher Prucha said in a statement. "Stratasys is the best company for us to join to achieve our vision, giving us an unparalleled opportunity to significantly expand market reach and enable us to bring our P3 technology to a larger audience."
Payment by publicly traded Stratasys includes $60 million at closing and $40 million based on performance over three years. About $32 million in cash will be paid at closing, which is expected in January.
While acquiring San Francisco-based Origin will accelerate the growth rate of Stratasys, the company expects the move will be slightly dilutive to non-GAAP earnings next year. The move turns accretive to non-GAAP: earnings by 2023.