Together, the two desktop 3D printing leaders are poised to create a powerhouse 3D printer manufacturer.
In a surprising announcement this morning, it appears that Ultimaker and MakerBot are to merge into a single entity.
A release from Ultimaker said:
“MakerBot and Ultimaker, two leaders in desktop 3D printing, today announced that they have come to a business combination agreement that will accelerate the adoption of additive manufacturing by providing a comprehensive desktop 3D printing ecosystem of hardware, software, and materials.”
And another from MakerBot said:
“The agreement is subject to regulatory approvals, with closing currently expected over the course of the second or third quarters of 2022. Until the agreement is finalized, both companies will continue to operate as usual.”
The “new entity” will be funded by the two companies’ existing investors, Stratasys (MakerBot) and NPM Capital (Ultimaker), who will jointly provide an injection of US$62.4M to supercharge the operation.
The intention is to have co-CEOs running the as-yet unnamed new entity, with the existing CEOs, MakerBot’s Nadav Goshen and Ultimaker’s Jürgen von Hollen, taking these roles. The headquarters for the new entity will be in both The Netherlands and New York, at existing premises.
MakerBot Ultimaker Merger Analysis
While today’s shocking announcement was unexpected, perhaps it should not have been so. In retrospect the two companies have had quite similar parallel paths. Consider the following:
- Both companies were among the first to launch when Stratasys’ original patents expired in 2008
- Both companies were the initial leaders in the desktop 3D printing industry
- Both companies launched 3D model repositories, Thingiverse and YouMagine
- Both companies began in the DIY market, using open source principles
- Both companies gradually moved away from open source, one more than the other
- Both companies received significant investment
- Both companies switched their markets from the DIY / hobby space to professional 3D printing
- Both companies now focus on engineering materials for prototyping and production
- Both companies offer sophisticated material profile libraries and material provider partnerships for professional use
When you consider this path, the two companies are now addressing essentially the same markets: education, professionals, and industry. If you’re both doing the same thing, then why not do it together and leverage both companies’ resources? They’ve created a powerhouse 3D printer manufacturer.
This is likely bad news for other 3D printer manufacturers producing professional-level equipment. They will now have to compete against a huge juggernaut overflowing with well-funded sales reps and advertising everywhere.
It may be that the pair believe there will soon be a huge shift of interest by professionals and industries towards their product segment, and they are positioning for maximum strength to compete.
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About the Author: Kerry Stevenson is passionate about 3D printing and has written thousands of stories on 3D printing technology at Fabbaloo.