Stratasys to purchase additional shares in Xaar 3D, upping stake to 45%
The company previously owned 15 percent of Xaar 3D's shares
Stratasys today announced it will be increasing its stake in Xaar 3D Ltd., a company founded last year by the 3D printing giant in collaboration with Xaar PLC, a supplier of industrial inkjet printheads. Stratasys now holds a 15% stake in the company and plans to increase it to 45%, with Xaar PLC owning the remaining 55% through its fully owned subsidiary Xaar 3D Holdings.
In a recent purchase agreement signed by the two companies, Stratasys also has the option of acquiring the remaining shares of Xaar 3D in the future. By growing its shares in the young company, Stratasys hopes to accelerate the development of Xaar 3D’s High Speed Sintering (HSS) additive manufacturing solution.
As mentioned, Xaar 3D Ltd. was formed in July 2018 by Stratasys and Xaar PLC, who set out to further develop High Speed Sintering AM solutions, which Stratasys would subsequently bring to market. The technology consists of uses an inkjet printhead to selectively deposit an infrared absorbing fluid onto a powder bed surface. The powder is then exposed to infrared light, which causes a sintering reaction on the printed surface. This is repeated, layer by layer, until an object is built up.
The novel HSS technology is designed for the production of end-use parts in low-to-medium production volumes. The technology has many application areas, but is primarily focused at the industrial sector.
“Xaar 3D has made significant progress over the past year and we see benefits to Stratasys in extending its investment in Xaar 3D’s innovative High Speed Sintering based solutions,” said Omer Krieger, EVP of Products. “We look forward to continue developing the technology together with Xaar and believe the combined expertise of both parties will lead to exploitation of the technology’s promising potential. This continues our company’s strategy of complementing our own robust R&D efforts with partnerships and investments in other innovative companies to develop new capabilities and products that create new value to our customers.”
Doug Edwards, CEO of Xaar PLC, added: “Xaar 3D has great potential and we look forward to continuing to work with Stratasys to develop its full potential in this deeper relationship. I am pleased that this transaction will create good value for Xaar shareholders and unlocks the ability for more significant value in due course.”