Stratasys announced it signed an agreement to acquire 3D printing startup Origin in a transaction for total consideration of up to 100 million dollars, including cash and stock. The merger enables Stratasys to expand its leadership through innovation in the fast-growing mass production parts segment with a next-generation photopolymer platform. Subject to various approvals and other closing conditions, the acquisition is expected to close in January 2021.
Stratasys expects Origin’s proprietary Programmable PhotoPolymerization (P3) technology to be an important growth engine for the company, adding up to 200 million dollars incremental annual revenue within five years. The acquisition will help fortify Stratasys’ leadership position in polymers and production applications of 3D printing in industries such as dental, medical, tooling, and select industrial, defense, and consumer goods segments. According to an internal Stratasys market analysis, manufacturing applications show the most potential for significant growth in the 3D printing industry, reaching approximately 25 billion dollars by 2025. Stratasys anticipates that production-oriented resin-based solutions can address a significant part of the total market for polymer additive manufacturing. In fact, it is estimated that resin polymer-based additive systems will grow at a 20% annual rate from 2020 to 2025.
Origin’s P3 technology, an advancement on Digital Light Processing (DLP) principles, cures liquid photopolymer resin with light. The company’s first manufacturing-grade 3D printer, Origin One, precisely controls light, heat, and force, among other parameters, via Origin’s closed-loop feedback software. This new technology enables customers to build parts with industry-leading accuracy, consistency, size and detail, while using a wide range of commercial-grade, durable resins.