Stratasys, Ltd. (SSYS) Goes Mainstream with MakerBot

3D Systems is not slowing down either in regard to acquisitions. As of June 12, 2013, the company is acquiring 80% of Phenix Systems, a leading global provider of direct metal selective laser sintering 3D printers. With the accelerating demand for direct metal production, 3D Systems is leveraging Phenix Systems’ unique direct metal technology to strengthen and expand its offerings into aerospace, automotive, defensive and healthcare manufacturing markets. Both Stratasys and 3D Systems continue to expand through acquisitions.

However, another 3D printing rival, ExOne Co (NASDAQ:XONE) continues to focus on the industrial end where it has been working with blue chip companies such as Bayerische Motoren Werke AG (FRA:BMW), Caterpillar Inc. (NYSE:CAT) and Ford Motor Company (NYSE:F). ExOne has been implementing additive manufacturing into the production processes at these leading companies globally. ExOne’s M-Flex system will provide metal printing capability as well, offering speeds 10 times faster than its previous generation.

The 3D printing industry is expanding rapidly and the ultimate winner is yet to be determined. 3D Systems continues to expand into all fronts while Stratasys, Ltd. (NASDAQ:SSYS) continues to shift toward the mainstream to catch up with 3D Systems.

Bottom line

The acquisition of MakerBot completes Stratasys’ offerings and will help the company to expand and leverage its strengths into the desktop 3D printer market. While more competition is expected between Stratasys’ MakerBot and 3D Systems’ 3D printers in the desktop market, both companies will benefit from the increasing awareness of consumers in regard to the expanding market. For now, this optimistic acquisition deal should help Stratasys, Ltd. (NASDAQ:SSYS) maintain its high valuation.

Nick Chiu has no position in any stocks mentioned. The Motley Fool recommends 3D Systems, Stratasys, and The ExOne Company. The Motley Fool owns shares of 3D Systems and Stratasys and has the following options: Short Jan 2014 $36 Calls on 3D Systems and Short Jan 2014 $20 Puts on 3D Systems.

The article Stratasys Goes Mainstream with MakerBot originally appeared on Fool.com.

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