3D Systems Corporation (DDD), Stratasys, Ltd. (SSYS): Let Them Decorate Cake

So what does that mean for investors? Some analysts balk at the torrid pace of mergers and acquisitions, fretting that the parent companies will be unable to consolidate their operations successfully, that frequent public offerings dilute existing shareholder value, and that growth rates are kept artificially high by simply buying revenue through acquisition.

Certainly, this acquisition pace can’t be kept up forever, but for now, I’m not worried: 3-D printing is still a relatively fragmented industry, and within that industry only 3D Systems Corporation (NYSE:DDD) and Stratasys, Ltd. (NASDAQ:SSYS) are pure-play 3-D printers that have access to public capital markets. I think it’s a smart move to take advantage of this access to capital to consolidate control over what is clearly a fast-growing industry. So far, the dramatic growth in free cash flow per share at these companies has easily outpaced the dilutive effects of new share offerings, and I believe today’s frenzied pace of acquisitions is actually setting both companies up for longer-term success as they build up competitive moats by expanding their installed base of machines and acquiring more and more intellectual property.

The article 3-D Printers Pick Up the Pace on Acquisitions originally appeared on Fool.com.

Fool contributor Daniel Ferry owns shares of 3D Systems and Stratasys. The Motley Fool recommends 3D Systems, BMW, Nike, and Stratasys, owns shares of 3D Systems, Nike, and Stratasys, and has options on 3D Systems. 

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