Geomagic, an international developer of 3D technology, is being acquired by longtime business partner 3D Systems.
Ping Fu, co-founder and CEO of Geomagic, will join 3D Systems in an executive role.
3D Systems (NYSE: DDD) is based in Rock Hill, S.C.
Investors apparently liked the deal. Shares in 3D Systems climbed $1.97, or 3.5 percent, to $57.75 in noontime trading.
Financial terms of the deal weren’t disclosed.
The acquisition was announced Thursday morning in a letter from Tom Kurke, president and chief operating officer of Geomagic. 3D Systems also issued a press release.
“Geomagic represents the perfect strategic fit for us and we will be thrilled to welcome 3D pioneer and Geomagic Founder and CEO Ping Fu as our Chief Strategy Officer once the deal has closed,” said Abe Reichental, 3D Systems’ CEO. “Our complementary capabilities in product development, channel coverage and marketing combined with greater efficiencies are sure to result in more affordable and user friendly solutions that will delight our customers and could present attractive long term shareholder value. In line with that, we intend to expand the range of our 3D authoring solutions further into new manufacturing and consumer applications and concurrently maintain and enhance the existing Geomagic and Rapidform product lines.”
In announcing the deal, Fu said being acquired would provide “scale, resources and strategic platform” for the firms’ combined vision to capitalize on 3D opportunities.
“We have worked with 3D Systems for many years to accelerate adoption of 3D content-to-print solutions and believe that now is the right time to combine our efforts to further democratize access to design and 3D printing,” Fu said. “Joining 3D Systems provides us with the scale, resources and strategic platform to realize our shared vision of delivering functional, affordable and extensible 3D authoring solutions for the benefit of professional designers and engineers, as well as the exciting maker’s movement.”
3D Systems is a provider of content-to-print solutions such as 3D printers, print materials and on-demand custom parts services for professionals and consumers alike.
Geomagic is a global leader in development of 3D software for engineering and other applications.
The letter from Kurke follows:
Dear valued customers and partners:
As we ring in 2013, we have some exciting news to share with you! 3D Systems, a leading global provider of content-to-print solutions, has signed an agreement to acquire Geomagic.
Geomagic (and its Sensable Group) have worked with 3D Systems for many years to accelerate the adoption of 3D content-to-print solutions and believe that now is the right time to combine our efforts to further democratize access to design and 3D printing. Joining 3D Systems provides us with the scale, resources and strategic platform to realize our shared vision of delivering world-class, affordable and extensible 3D authoring solutions for the benefit of our design and engineering customers, as well as to pursue new markets opportunities.
Geomagic’s powerful 3D capabilities, including capture, mesh editing, design, sculpting, inspection and haptic solutions, expand 3D System’s content-to-print portfolio of 3D printers, materials, global services, consumer products and solutions and complementary software solutions, including Rapidform. Together, we’ll be able to better serve our combined customers with more innovative and integrated solutions and streamlined workflows — and provide our distribution partners with a broader portfolio of products and local support with global reach.
One of the most exciting aspects of this merger is that Ping Fu, our founder and CEO, will become 3D Systems’ Vice President and Chief Strategy Officer once the acquisition is complete. In this role, she will be able to further expand the vision she has maintained since founding Geomagic in 1997, and that is to develop and apply 3D technology for the benefit of humanity, a vision shared by and aligned with 3D Systems. She will also continue to lead Geomagic while leading the development of a strategic plan for the future.
While all of us at Geomagic are excited to become part of the team at 3D Systems, we are even more excited for our customers and partners. We believe that the ability to deliver new, disruptive, more integrated and a broader portfolio of solutions will benefit everyone, and we hope that you share this excitement!
The acquisition is expected to close during the first quarter of 2013, after customary closing conditions are met. We value your relationship with us and we are committed to our business with you. You will continue to be supported by your existing resellers and Geomagic sales and support teams. We have exciting new products coming to market later this month, and some great promotions around the 2013 product launches. You can rest assured that Geomagic and 3D Systems share a common commitment to ensuring your success throughout this transition and into the future.
Please feel free to contact your Geomagic sales representative if you have any questions. And from all of us at Geomagic, best wishes for a happy, healthy, successful and exciting 2013!
