Stratasys, Ltd. (SSYS), 3D Systems Corporation (DDD): How to Profit From Changes in the 3-D Printing Universe

Like its rivals, Dassault Systemes is also in buying mode and recently acquired Apriso, which provides manufacturing operations software for the management of product distribution, quality, logistics, manufacturing, and compliance processes throughout production plants. The price tag on the purchase is about $205 million, payable in cash, and the transaction should be completed by July 2013.

Apriso’s manufacturing process software is a natural fit for Dassault’s industrial customers with products in or entering the production phase of their lifecycle. The process software can expand Dassault’s reach across the 12 industries it serves, which includes consumer goods and retail, high tech, life sciences, and industrial equipment. Providing software solutions to help customers manage the production and distribution of their products is a logical next step for the company to maintain and increase its market share.

Conclusion

The recent acquisitions in the 3-D printing space by the industry’s larger players should benefit the shareholders of these companies and provide long-term value to these businesses. At current price-to-earnings multiples, their shares are reasonably priced based on their future five-year growth prospects, especially those of 3D Systems Corporation (NYSE:DDD) and Stratasys, Ltd. (NASDAQ:SSYS). By aligning with and acquiring new businesses that enhance their current product/service lines, these companies are gaining new customers in other markets and/or providing more options to their current ones.

The article How to Profit From Changes in the 3-D Printing Universe originally appeared on Fool.com and is written by Eileen Rojas.

Eileen Rojas has no position in any stocks mentioned. The Motley Fool recommends 3D Systems and Stratasys. 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. Eileen is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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