Stratasys to increase ownership in Xaar 3D from 15% to 45% with option to fully acquire
REHOVOT, Israel & EDEN PRAIRIE, Minn. — (BUSINESS WIRE) — September 12, 2019 — Stratasys Ltd. (NASDAQ: SSYS), a global provider of 3D printing technology and services, announced it has entered into an agreement with Xaar plc (LON: XAR) to purchase shares of Xaar 3D Ltd. that will increase Stratasys’s stake in Xaar 3D from 15 to 45 percent, with Xaar plc, through its fully owned subsidiary, Xaar 3D Holdings, having the remaining 55 percent. In addition, the agreement includes an option for Stratasys to acquire the remaining shares of Xaar 3D. The transaction is subject to Xaar plc shareholder approval.
The strategic investment by Stratasys is intended to enable Xaar 3D to accelerate the development of its additive manufacturing solutions based on High Speed Sintering (HSS) technology. These solutions are designed for end-use parts applications in low-to-medium production volumes, primarily in the industrial segment.
Xaar plc and Stratasys announced the formation of Xaar 3D Ltd in July 2018. The purpose of the joint venture is to develop High Speed Sintering additive manufacturing solutions that Stratasys can bring to market.
“Xaar 3D has made significant progress over the past year and we see benefits to Stratasys in extending its investment in Xaar 3D's innovative High Speed Sintering based solutions. We look forward to continue developing the technology together with Xaar and believe the combined expertise of both parties will lead to exploitation of the technology's promising potential,” said Omer Krieger, EVP Products. “This continues our company’s strategy of complementing our own robust R&D efforts with partnerships and investments in other innovative companies to develop new capabilities and products that create new value to our customers.”
“Xaar 3D has great potential and we look forward to continuing to work with Stratasys to develop its full potential in this deeper relationship. I am pleased that this transaction will create good value for Xaar shareholders and unlocks the ability for more significant value in due course,” said Doug Edwards, Chief Executive Officer, Xaar plc.
Stratasys is a global leader in additive manufacturing or 3D printing technology and is the manufacturer of FDM® and PolyJet™ 3D printers. The company’s technologies are used to create prototypes, manufacturing tools, and production parts for industries including aerospace, automotive, healthcare, consumer products, and education. For 30 years, Stratasys products have helped manufacturers reduce product development time, cost, and time to market, as well as reduce or eliminate tooling costs and improve product quality. The Stratasys 3D printing ecosystem of solutions and expertise includes 3D printers, materials, software, expert services, and on-demand parts production. Online at www.stratasys.com.