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Stratasys will have option to buy balance of Xaar 3D
Posted on Thursday, 12 September 2019 14:41
US 3D printing and additive manufacturer Stratasys will receive an option to pick up the remaining 55.0 per cent stake it does not already own in Xaar 3D, the 3D printing research and development company it operates as a joint venture with Xaar.
Xaar made the announcement as it unveiled an agreement to sell 20.0 per cent of the target to its partner, which will up its investment to 45.0 per cent as a consequence, for USD 10.00 million.
It said the call option for the remaining 55.0 per cent stake is exercisable over three years and will enable the firm to buy the holding for at least USD 33.00 million.
Completion of the 20.0 per cent share sale is slated to occur by the end of this year.
Xaar said the move would create a strong strategic partnership and unlock value for its shareholders.
The two parties formed the joint venture company back in July 2018; under the original agreement, Xaar was to hold an 85.0 per cent stake, with Stratasys taking 15.0 per cent and an option to up this to 45.0 per cent, which is now taking place with today’s stake increase.
Upon formation of the business, Xaar chief executive Doug Edwards said the move was in line with plans to diversify the company’s activities.
Both parties have also agreed to invest a further combined USD 3.25 million in the joint venture once Stratasys has increased its holding to 45.0 per cent.
Xaar has yet to disclose exactly how proceeds of the deal will be used, saying that it will evaluate its ongoing cash requirements upon completion of an ongoing strategic review of its thin film business.
Stratasys claims to be a world leader in additive technology products for clients in the aerospace, automotive, healthcare, consumer products and education sectors.
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