3D Systems Corporation (DDD) recently closed the $120 million acquisition of Simbionix, the Cleveland, OH-based leading 3D surgical simulation and training company. The acquisition is expected to be immediately accretive to 3D System’s cash generation and bottom line.
As suggested by its capital allocation strategies, the company remains focused on expanding its presence in the medical industry. In Apr 2014, 3D Systems had acquired another leading provider of personalized surgical treatments and patient-specific medical devices – Medical Modeling, which groups together expertise in medical imaging, surgical simulation and additive manufacturing.
Simbionix brings on board advanced technologies for patient-specific simulation solutions that are approved by U.S. Food and Drug Administration (FDA). The company has strong domain expertise with a footprint across 60 countries. Moreover, it has around 16 simulation platforms and over 60 interventional procedures, catering to as many as 8 specialties.
Simbionix perfectly complements 3D Systems’ strength in printing patient-specific instruments and devices, which in turn, will significantly aid the advancement of healthcare industry. This apart, its training capabilities are a positive for growth of the combined entity.
3D Systems seems well positioned to gain from the increasing adoption of 3D-printed solutions in the healthcare industry. Even the Medical Device & Diagnostic Industry Magazine has acknowledged the potential of 3D printing technologies in creating advanced custom-made products for diverse medical requirements, ranging from organs and tissues to prosthetics and exoskeletons.
In a separate announcement, 3D System revealed that it has formed an advisory board in collaboration with SME – a society of student and professional Americans and the National Additive Manufacturing Innovation Institute – America Makes – for the advancement of its M.Lab21 Education Initiative. The project involves building a revolutionary manufacturing lab, aimed at bringing industrial arts and technical education into the high school curriculum. This apart, the advisory board will consist of specialists from Intel Corporation (INTC), General Electric Company (GE), Johnson Controls Inc. (JCI), Lockheed Martin Corporation, Deloitte and National Institute of Standards and Technology.
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