Protolabs Reaches Agreement to Acquire 3D Hubs, Creates the World’s Broadest Digital Manufacturing Offer for Custom Parts
January 19 2021 - 7:00AM
Business Wire
Transaction Highlights:
- Significantly expands customer offering with network of premium
manufacturing partners
- Transformational acquisition enhances customer value
proposition enabling Protolabs to more holistically serve
customers
- Total consideration of $280 million to be funded with cash on
hand and equity at close, and up to an additional $50 million of
contingent consideration
- Acquisition of 3D Hubs expected to accelerate Protolabs’
revenue growth rate and be slightly dilutive to non-GAAP earnings
per share in 2021
- Transaction expected to close by the end of January, subject to
customary closing conditions
Proto Labs, Inc. (NYSE: PRLB), a global technology-enabled
digital manufacturing leader, has entered into a definitive
agreement to acquire 3D Hubs, Inc. (“3D Hubs”), a leading online
manufacturing platform that provides engineers with on-demand
access to a global network of approximately 240 premium
manufacturing partners. The transaction creates the world’s most
comprehensive digital manufacturing offer for custom parts,
providing Protolabs with a network of manufacturing partners to
fulfill a breadth of capabilities outside of its current envelope,
as well as a broader offering of pricing and lead time options.
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“The addition of 3D Hubs provides Protolabs a platform to evolve
our service model to provide unprecedented manufacturing
flexibility to our customers,” said Rob Bodor, Protolabs’ current
VP and GM of the Americas and incoming President and Chief
Executive Officer. “Our combined organizations will provide the
market an industry-leading digital manufacturing solution to serve
their needs from idea to prototype to full end-use part production.
Together we can fulfill nearly every custom manufacturing need
across the product life cycle.”
Founded in 2013, 3D Hubs has facilitated the production of over
6 million custom parts and products through its digital platform.
3D Hubs provides customers with instant pricing and design
feedback, and orders are fulfilled through thoroughly vetted
premium manufacturing partners in over 20 countries worldwide,
offering vast manufacturing capacity and a broad range of
manufacturing capabilities at a variety of competitive pricing
levels.
“The entire 3D Hubs team is thrilled to join Protolabs and
continue to revolutionize the manufacturing industry through
innovation. At 3D Hubs, our goal is to empower companies to create
revolutionary products through supply chain efficiency and
reliability. We are confident that partnering with Protolabs will
help us advance that mission,” said Bram de Zwart, Co-Founder and
Chief Executive Officer at 3D Hubs.
“3D Hubs’ company culture lives and breathes engineering and
fast-paced innovation; our team is very excited to partner with
Protolabs to build the best on-demand manufacturing solution
imaginable,” said Brian Garret, 3D Hubs’ Co-Founder and Chief
Product Officer.
Under the terms of the agreement, closing consideration of $280
million will be funded with $130 million in cash and $150 million
in Protolabs common stock. An additional $50 million of contingent
consideration is payable subject to performance-based targets over
two years after close, funded with 50% cash and 50% Protolabs
common stock. Protolabs has also established an employee incentive
fund payable to 3D Hubs employees based on achievement of both
financial performance and employee retention targets.
Protolabs anticipates the acquisition of 3D Hubs will accelerate
its revenue growth rate and be marginally dilutive to non-GAAP
earnings per share in 2021. 3D Hubs’ 2020 revenue is estimated to
be $25 million and the company’s revenue has had a compound annual
growth rate of over 200% since 2017. The transaction is expected to
close by the end of January, subject to customary closing
conditions.
“The acquisition of 3D Hubs is part of the continued evolution
of Protolabs as the digital manufacturing leader, serving more and
more of our customers’ needs,” said Vicki Holt, Protolabs’ Chief
Executive Officer. “Protolabs’ leading in-house technology-enabled
manufacturing services combined with 3D Hubs’ global network of
premium manufacturing partners will yield the greatest value to our
customers for years to come.”
Conference Call
Protolabs will host a conference call to discuss the acquisition
of 3D Hubs on Tuesday, Jan. 19 at 8:30 a.m. EST. A simultaneous
webcast of the call will be available via the investor relations
section of the Protolabs website at
https://edge.media-server.com/mmc/p/jrtjbxmb. To access the live
call, please dial 201-689-8354 or outside the U.S. dial
877-709-8150 at least five minutes prior to the 8:30 a.m. EST start
time. An audio replay will be available on the investor relations
section of the Protolabs website beginning approximately two hours
following the end of the conference call.
About 3D Hubs
3D Hubs is an online manufacturing platform that provides
companies with on-demand access to a global network of
manufacturing services. Users can easily upload their design,
instantly receive a quote, and start production at the click of a
button. Founded in Amsterdam in 2013, 3D Hubs has produced more
than 6 million parts using various manufacturing technologies. The
company has raised over $30 million in funding from Balderton
Capital, EQT Ventures, Endeit Capital, Hearst Ventures, DOEN,
Future Shape, Rockstart, and other investors. Visit 3dhubs.com for
more information.
About Protolabs
Protolabs is the world’s leading source for digital
manufacturing services. The technology-enabled company produces
custom components in as fast as 1 day with automated 3D printing,
CNC machining, sheet metal fabrication, and injection molding
processes. Its digital approach to manufacturing enables
accelerated time to market, reduces manufacturing costs, and
enables supply chain agility throughout the product life cycle.
Visit protolabs.com for more information.
Advisors
Navidar Group is serving as financial advisor to Protolabs and
Faegre Drinker Biddle & Reath LLP is serving as its legal
counsel in connection with this transaction. Stifel Global
Technology Group is acting as financial advisor to 3D Hubs and
Cooley LLP is acting as its legal counsel.
Forward-Looking Statements
Statements contained in this press release regarding matters
that are not historical or current facts are “forward-looking
statements” within the meaning of The Private Securities Litigation
Reform Act of 1995. These statements involve known and unknown
risks, uncertainties and other factors which may cause the results
of Protolabs to be materially different than those expressed or
implied in such statements. Certain of these risk factors and
others are described in the “Risk Factors” section within reports
filed with the SEC. Other unknown or unpredictable factors also
could have material adverse effects on Protolabs’ future results.
The forward-looking statements included in this press release are
made only as of the date hereof. Protolabs cannot guarantee future
results, levels of activity, performance, or achievements.
Accordingly, you should not place undue reliance on these
forward-looking statements. Finally, Protolabs expressly disclaims
any intent or obligation to update any forward-looking statements
to reflect subsequent events or circumstances.
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version on businesswire.com: https://www.businesswire.com/news/home/20210119005245/en/
Investor Relations Contact Protolabs Dan Schumacher,
763-479-7240 Director of Investor Relations
daniel.schumacher@protolabs.com
Media Contact Protolabs Will Martin, 763-479-7719 Sr.
Marketing Communications Manager will.martin@protolabs.com
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