There’s huge news from Stratasys: They have acquired the assets and operations of Forward AM.
Forward AM was originally launched by BASF as part of their massive venture into the world of additive manufacturing. The chemical giant felt at the time that the 3D print industry could grow significantly and they wanted to be the key supplier of advanced materials.
For a time, it seemed that BASF was under every rock in the industry. Each month, there would be one announcement or another from BASF about another way they were getting more deeply involved.
One of those ventures was Forward AM, a separate unit that would provide the advanced materials to companies using additive manufacturing. The operation provided a wide range of polymer powders, pellets, filaments (including metal and reinforced filaments), resins, as well as a number of consulting services. They offer dozens of highly respected advanced materials for additive manufacturing.
However, earlier this year, BASF announced they were departing the additive manufacturing industry. It seems their growth aspirations were not met by an industry that did not grow as much as anticipated. That was a surprising move considering the incredible efforts BASF had previously made in the space.
This left Forward AM in a difficult position, and it was unclear what was to happen to its operations.
Now we know what will happen: they have been acquired by Stratasys. In a post by Forward AM, they say:
“After navigating a challenging period, we’re thrilled to share exciting news about the future of Forward AM. Stratasys, a global leader in additive manufacturing, has acquired the key assets and operations of Forward AM Technologies GmbH. While we will operate under the Forward AM brand, we will formally constitute a new standalone company within Stratasys, Mass Additive Manufacturing GmbH.”
They add that operations will continue as is, although now within the Stratasys family. They also believe the huge resources of Stratasys — and continued interest in AM, unlike BASF — will allow them to grow. It sounds like they are still early on in the acquisition and some aspects are yet to be determined.
For Stratasys, this move is quite interesting.
Some weeks ago, Stratasys obtained a rare investment from VCs, something we don’t see very often after repeated investment failures in other 3D print companies. I was curious about that investment, but now it may appear that it was perhaps partly a way to fund the acquisition of Forward AM.
The acquisition significantly raises the materials capabilities of Stratasys, who now gain direct access to materials for their FDM, SLA, and SAF systems. Materials, as we’ve said many times, are the key to unlocking new applications. It’s possible that this acquisition may lead to additional machine sales for Stratasys due to easier access to materials.
As for the consulting side of Forward AM, it is unclear how this could proceed. One interesting asset is their lattice generation software, which is something that Stratasys does not currently have, as far as I know. They may be able to leverage that in a significant manner, similar to what Carbon has done with their advanced software.
In other words, Stratasys could now propose intriguing solutions to product manufacturers as they now have the hardware, materials, and software tools to create these products. That strategy worked for Carbon, why could it not work for Stratasys, too?
Via Forward AM
