A large South Carolina 3D printing company has agreed to acquire Titan Robotics, a Colorado Springs-based designer and manufacturer of large-format 3D printers, in a deal that will keep Titan in the Springs while furthering its growth.
The deal with 3D Systems of Rocky Hill, S.C., is expected to be completed April 1 and will allow 3D Systems to expand into new markets that include foundries, consumer goods, transportation, contract manufacturing, transportation and motorsports, aerospace and defense as well as manufacturing, 3D Systems said in a news release. Company officials said on a conference call Monday that 3D paid nearly $80 million in cash for Titan and another company acquired last week.
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“With the addition of Titan Robotics’ unique extrusion technology, we will be able to address our customers’ need for large build volumes, superior performance and improved productivity at a significantly lower cost,” Jerry Graves, 3D Systems president and CEO, said in the release. While most 3-D printers use a filament system, Titan uses widely available injection-molding pellets in a process called pellet extrusion, which is faster and allows a greater range of materials.
“With the Titan acquisition, I am confident we can rapidly expand in the pellet extrusion market for industrial applications,” Graves said Monday during the conference call with stock analysts and investors.
Titan CEO Rahul Kasat said Monday that company officials began seeking a “strategic partner” last July. After talking with about a dozen potential suitors, Titan management selected 3D Systems a few months ago for further talks and “due diligence” for a potential deal.
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All 35 Titan employees and management will be retained and Titan’s operations will remain in Colorado Springs after the deal is completed, Kasat said. Titan and 3D Systems management are developing plans to expand the Colorado Springs operations, he said.
“This is a tremendous opportunity for Colorado Springs as we are added to the 3D Systems portfolio. I anticipate a lot of investment coming into Colorado Springs as a result of this transaction,” Kasat said. “3D Systems has a tremendous brand and recognition and a global sales and service network. They have all the 3D printing technologies except pellet extrusion — we are the missing piece that gives them that capability. It is a very synergistic transaction.”
Titan was started in 2014 as a hobby by Clay Guillory, then an engineer at Diversified Machine Systems in Colorado Springs. It soon grew into a business as he received orders from customers to build large 3D printers.
In addition to building and selling the large-scale, industrial 3-D printers, Titan does print jobs for customers. Additive manufacturing — or industrial 3-D printing — helps produce everything from prosthetics to footwear to car parts.
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Guillory operated Titan out of his garage until moving to a facility on Garden of the Gods Road in 2016 and grew the business to about a dozen employees by 2018, adding Kasat and Bill Macy as partners that same year. The company moved in 2019 to a 22,000-square-foot complex near the Colorado Springs Airport and had 27 employees by late 2020. Titan received a $500,000 state grant in 2020 to build a demonstration unit of an industrial 3-D printer, add employees and participate in trade shows.
Founded more than 30 years ago, 3D Systems uses 3D printing for additive manufacturing in a variety of industries. Last year, the company acquired a Philadelphia company specializing in 3D printing for the medical industry and a German software firm, while selling its on-demand manufacturing operations and its medical simulation business. Last year, 3D Systems generated $615.6 million in revenue and profits of $322.1 million, mostly from selling the two operations.
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