- The novel acquisition is estimated to escalate Protolabs’ revenue growth rate in the upcoming years.
- Transaction is likely to be closed by January end, subject to customary closing conditions.
United States-based technology-enabled digital manufacturing pioneer- Protolabs has recently announced acquiring 3D Hubs, Inc., a leading online manufacturing platform that works into delivering engineers with on-demand access to global network.
Speculations have it that the transaction is expected to create the world’s most inclusive digital manufacturing offer for custom parts, equipping the former company with a wide web of manufacturing partners to fulfil a range of capabilities outside of its current envelope.
As per credible reports, under the acquisition pact, closing consideration of USD 280 million would be funded with USD 130 million in cash on hand and USD 150 million in Protolabs common stock. Moreover, an additional of USD 50 million of contingent consideration is payable considering the performance-based targets over the 3 years post closure, funded with 50% cash and 50% Protolabs common stock.
Besides, through this transaction, the company anticipates that the acquisition would accelerate its revenue growth rate and be slightly dilutive to non-GAAP earning per share in 2021.
Commenting on the potential acquisition, Rob Bodor, Protolabs’ current GM and VP of the Americas and incoming President and CEO rightly stated that the addition of 3D Hubs offers the company a platform to transform its service model to provide exceptional production flexibility to the company’s customers. In line with this, Protolabs’ combined organization would offer the market an industry-leading digital manufacturing solution to serve the needs from idea to prototype to complete end-use part production.
While supporting the acquisition statement, CEO and Co-Founder of 3D Hubs, Bram de Zwart, cited that the entire 3D Hubs team is delighted to have joined Protolabs to support its aim of revolutionizing the manufacturing industry through umpteen innovations. Bram added that the company believes that establishing a crucial partnership with Protolabs would help 3D Hubs proceed in that direction.
Source Credit: https://www.businesswire.com/news/home/20210119005245/en/Protolabs-Reaches-Agreement-to-Acquire-3D-Hubs-Creates-the-World%E2%80%99s-Broadest-Digital-Manufacturing-Offer-for-Custom-Parts