General Electric Co. announced plans to acquire two suppliers of additive manufacturing equipment, Arcam AB and SLM Solutions Group AG, for $1.4 billion. GE expects Arcam and SLM to bolster its existing material science and additive manufacturing capabilities. Each acquisition is structured as a public tender offer for all of the outstanding shares of stock of each company.
Arcam AB, based in MÃ¶lndal, Sweden, invented the electron beam melting machine for metal-based additive manufacturing, and also produces advanced metal powders. Arcam generated $68 million in revenues in 2015 with approximately 285 employees.
SLM Solutions Group, based in LÃ¼beck, Germany, produces laser machines for metal-based additive manufacturing. SLM generated $74 million in revenues in 2015 with 260 employees.
So what does this all mean for the 3D Printing Industry?
Does this once again show his multiples paid? If you add the revenue together, you get $142,000 in total revenues for the two targets and GE is paying 10x. But both firms do have great technology and more importantly, revenue.