Protolabs to acquire 3D Hubs in $320M deal
January 20, 2021
Proto Labs, Inc., (Protolabs) a global provider of digital manufacturing services headquartered in Maple Plain, Minnesota, USA, has entered into an agreement to acquire 3D Hubs, Inc., an online platform that provides engineers with on-demand access to a global network of approximately 240 premium manufacturing partners.
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.
“The acquisition of 3D Hubs is part of the continued evolution of Protolabs as the digital manufacturing leader, serving more and more of our customer’s needs,” stated 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.”
The transaction is reported to create the world’s most comprehensive digital manufacturing offering for custom parts, providing Protolabs with a network of manufacturing partners to fulfil a breadth of capabilities outside of its current envelope, as well as a broader offering of pricing and lead time options.
“The addition of 3D Hubs provides Protolabs a platform to evolve our service model to provide unprecedented manufacturing flexibility to our customers,” commented Rob Bodor, Protolabs’ current VP and GM of the Americas and incoming president and Chief Executive Officer. “Our combined organisations will provide the market with an industry-leading digital manufacturing solution to serve their needs from idea to prototype to full end-use part production. Together we can fulfil nearly every custom manufacturing need across the product lifecycle.”
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, with orders fulfilled through thoroughly vetted premium manufacturing partners in over twenty countries worldwide, offering vast manufacturing capacity and a broad range of manufacturing capabilities at a variety of competitive pricing levels.
“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,” stated Brian Garret, 3D Hubs’ Co-Founder and Chief Product Officer.
“The entire 3D Hubs team is thrilled to join Protolabs and continue to revolutionise the manufacturing industry through innovation. At 3D Hubs, our goal is to empower companies to create revolutionary products through supply chain efficiency and reliability,” added Bram de Zwart, co-founder and Chief Executive Officer at 3D Hubs. “We are confident that partnering with Protolabs will help us advance that mission.”
