3D Systems to Acquire a Portion of Xerox's Oregon Based Solid Ink Engineering
and Development Teams
*Expanded partnership leverages both companies' capabilities
*Catapults 3DS' multijet printers powered by Xerox print heads
*Combination cements technology and marketplace leadership
ROCK HILL, S.C. and NORWALK, Conn., Dec. 18, 2013 (GLOBE NEWSWIRE) -- 3D
Systems (NYSE:DDD) and Xerox (NYSE:XRX) today announced a transaction designed
to leverage both companies' 3D printing capabilities to accelerate growth and
cement leadership positions. 3D Systems entered into a definitive agreement to
acquire Xerox Corporation's Wilsonville, Oregon product design, engineering
and chemistry group and related assets for $32.5 million in cash. Both
companies expect the transaction to close before the end of 2013, subject to
fulfillment of certain customary conditions. This agreement expands the decade
and a half long collaboration between the companies, that already produced
3DS' best selling ProJet^® series 3D printers.
3D Systems Corporation Logo
"We are pleased to expand our relationship with an innovative partner of the
caliber of Xerox and expect that acquiring some of the Xerox Wilsonville
engineering team, together with their state-of the-art development labs and
selected licensed IP, will catapult our 3D printers' development and
manufacturing capabilities forward," said Avi Reichental, 3D Systems'
President and CEO. "This bold step is consistent with our belief that we must
act quickly and decisively to extend and cement our marketplace leadership
position by taking full advantage of the window of unprecedented opportunity
in front of us."
"This deal takes advantage of Xerox's world-class capabilities and expands our
relationship with 3D Systems in the exciting and dynamic 3D printing
industry," said Kevin Warren, President of Xerox Strategic Growth
Initiatives."It emphasizes how we are leveraging our expertise while we
continue to evolve our business model and pursue strategic growth
As part of this agreement, 3DS expects to add more than 100 experienced Xerox
engineers and contractors specializing in product design and materials science
to its global R&D team and immediately begin to operate its own facility
within the Xerox Wilsonville campus.Xerox will maintain ink and print head
development resources along with research relevant for digital printing and
the 3D markets.In connection with this strategic investment, 3DS expects to
progressively increase its annual R&D expenditures by approximately 75% to
100% over the next few years as it completes certain Xerox related engineering
services commitments and fully leverages its expanded capabilities.
"The stronger our marketplace leadership, the more powerful our economic model
becomes," continued Reichental. "Simply put, a solidified position translates
directly to higher revenue, higher profitability and greater earnings power
over time, and we are willing to sacrifice short term earnings to get there
Certain statements made in this release that are not statements of historical
or current facts are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995.Forward-looking statements
may involve known and unknown risks, uncertainties and other factors that may
cause the actual results, performance or achievements of the Company to be
materially different from historical results or from any future results or
projections expressed or implied by such forward-looking statements. In
addition to statements that explicitly describe such risks and uncertainties,
readers are urged to consider statements in the conditional or future tenses
or that include terms such as "believes," "belief," "expects," "estimates,"
"intends," "anticipates" or "plans" to be uncertain and forward-looking.
Forward-looking statements may include comments as to the company's beliefs
and expectations as to future events and trends affecting its business and are
necessarily subject to uncertainties, many of which are outside the control of
the company.The factors described under the headings "Forward-Looking
Statements," "Cautionary Statements and Risk Factors," and "Risk Factors" in
the company's periodic filings with the Securities and Exchange Commission, as
well as other factors, could cause actual results to differ materially from
those reflected or predicted in forward-looking statements.
About 3D Systems Corporation
3D Systems is a leading provider of 3D printing centric
design-to-manufacturing solutions including 3D printers, print materials and
cloud sourced on-demand custom parts for professionals and consumers alike in
materials including plastics, metals, ceramics and edibles. The company also
provides integrated 3D scan-based design, freeform modeling and inspection
tools. Its products and services replace and complement traditional methods
and reduce the time and cost of designing new products by printing real parts
directly from digital input. These solutions are used to rapidly design,
create, communicate, prototype or produce real parts, empowering customers to
manufacture the future.
More information on the company is available at www.3DSystems.com.
Since the invention of Xerography 75 years ago, the people of Xerox have
helped businesses simplify the way work gets done. Today, we are the global
leader in business process and document management, helping organizations of
any size be more efficient so they can focus on their real business.
Headquartered in Norwalk, Conn., more than 140,000 Xerox employees serve
clients in 160 countries, providing business services, printing equipment and
software for commercial and government organizations.
Learn more at www.xerox.com.
CONTACT: 3DS IR Contact: Stacey Witten
3DS PR Contact: Alyssa Reichental
Xerox PR Contact: Bill Mckee
Xerox IR Contact : Jennifer Horsley
3D Systems Corporation Logo
Press spacebar to pause and continue. Press esc to stop.