VALENCIA, Calif., Aug. 28 /PRNewswire/ -- 3D Systems Corporation (Nasdaq:NMS - news) announced today that it agreed to acquire the rapid prototyping ``Stereos'' product line and business from EOS GmbH of Germany, 3D's major European competitor.
Additionally, 3D stated that under the terms of the agreement it would settle all patent infringement and unfair competition lawsuits brought in 1993 and 1994 against EOS and an EOS customer, as well as all patent-office proceedings between the two companies.
3D will pay $3.25 million dollars, subject to certain adjustments based on final determination of the value of the assets acquired, issue a warrant to buy 150,000 of 3D's common shares at $8.00 a share within the next three years, and grant exclusive licenses to 3D patents relating to laser sintering.
The agreement is subject to due diligence prior to closing, expected within 10 days.
3D stated that it expects to recognize approximately $2 million of the purchase price and $350,000 in European restructuring expenses during the current, third quarter ending Sept. 26.
``We are pleased to acquire the EOS Stereos business on what we regard as favorable terms,'' stated Arthur B. Sims, 3D's chairman and chief executive officer. ``This transaction should significantly strengthen our strong and growing position in Europe while eliminating the potential expense and distraction of litigation.''
The EOS Stereos product line is based on stereolithography technology, which was introduced by 3D in the mid-1980's. In EOS' most recent fiscal year ended Sept. 30, 1996, Stereos-related sales amounted to approximately $6 million, or approximately 40 percent of EOS' rapid prototyping sales. EOS will continue to manufacture, sell and service rapid prototyping products based on laser sintering technology.
Sims added, ``Apart from the financial aspects of this transaction, we are excited over the opportunity to serve the Stereos customer base of more than 70 installations with enhanced systems, maintenance services and supplies. We will be moving swiftly to assimilate this operation into our existing European business. It is our expectation that this acquisition will be accretive to earnings within a quarter or two.''
3D Systems currently serves the European market through direct sales offices in Germany, France and the United Kingdom with a total of 82 sales, service and administrative employees. In 1996, 3D Systems reported European revenues of $21.6 million, and currently has more than 200 rapid prototyping installations in Europe.
3D Systems develops, manufactures and markets solid-imaging systems that substantially reduce the time and costs of bringing new products to market by quickly fabricating mechanical parts after they are designed by engineers using computer systems. Major applications include rapid prototyping and tooling for products in a variety of manufacturing industries, including automotive, aerospace, medical, computer, electronic and consumer products.
For current investor information, please call our shareholder communications service at 800-757-1799 or visit our Web site at 3dsystems.com. |
