Stratasys is getting into metal 3D printing?
An announcement from Stratasys last week said the company had invested in 3D printer manufacturer Tritone. Although it is a minority stake, it seems the door is open to a full acquisition later. Stratasys said:
“Participation in the most recent investment round, which includes Discount Capital and Fortissimo Capital, provides Stratasys with an initial minority ownership stake along with a path, at Stratasys’ option, to increase its equity stake and potential future ownership. In addition, a phased commercial agreement has been structured to foster close collaboration between the companies, with a focus on supporting Tritone’s reseller network and leveraging sales and marketing synergies.”
Hold on, what exactly is Tritone?
They are a smaller player that offers a unique material printing process called “MoldJet”. This process uses powder to form molds, layer by layer. The trick is that the process also deposits model material into the mold voids as the layers progress. Once complete, you have a green part that can be sintered into final solid state.
MoldJet has the ability to print objects in almost any metal injection molding powder (MIM), which are widely available in countless varieties. This includes not only metal, but also ceramics.
This is not the first time Stratasys has attempted to get into the metal game, and for a good reason.
One of Stratasys’ key strengths is their huge reseller network. However, these resellers are “captive” in that they are generally not allowed to sell any competing systems. This was a problem years ago because the metal market became one of the most profitable segments, yet Stratasys resellers had no metal options to sell.
To rectify the situation, long ago Stratasys invested in Desktop Metal. The thought was that the Desktop Metal systems could then be sold through the Stratasys reseller network and pacify the profit-hungry participants.
Later, Stratasys management attempted to merge with Desktop Metal, but the proposal was shot down by Stratasys shareholders. Eventually that turned out to be a good decision, as the Desktop Metal assets eventually faded away under new owners Nano Dimension.
Previously, Stratasys had participated in a US$25M investment in LPW, a UK firm that produces equipment for metal powder handling. It’s possible that move had something to do with shoring up equipment access for their service bureau at the time, but nevertheless even in 2017 Stratasys was showing interesting in metal.
This is a common pattern among larger players in the industry: as their existing product lines top out in the market, the obvious move is to make new product lines. Metal 3D printing is a still profitable area, although we don’t know for how long. Stratasys may be simply collecting options for the future as competition heats up in the other areas currently addressed by the company.
For now, it seems that Stratasys is going to get a lot more involved in the day-to-day business of Tritone, and, if they like what they see, we may see further acquisitions in the future.
Via Stratasys
