by Christopher Freeburn | December 18, 2013 10:41 am
On Wednesday, 3D Systems (DDD) announced that it had agreed to purchase certain technical assets from Xerox (XRX).
Under terms of the deal, the 3D printer manufacturer will pay $32.5 million to buy a Xerox product chemistry, engineering and design group, based in Willsonville, Ore. The deal is predicted to close before the end of this year.
DDD stock fell slightly after the agreement’s announcement. DDD stock has surged more than 70% since July. Interest in 3D printing technology has increased as lower-priced printers reach the consumer market.
About 100 Xerox engineers and other staff will joined DDD under the transaction. DDD will open a facility inside the Xerox complex in Wilsonville.
3D Systems said that it expects the assets included in the deal to “catapult our 3D printers’ development and manufacturing capabilities forward.” It also anticipates raising its research and development outlays by between 75% and 100% in the coming two years.
DDD stock has soared since 2011, rising more than 800%.
Shares of XRX fell modestly in Wednesday morning trading.
Source URL: https://investorplace.com/2013/12/ddd-stock-3d-systems-buys-xerox-group-32-5m/
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