Arcam acquires strategic partner DiSanto, eyes expansion of 3D-printed orthopedics

Arcam (Mölndal, Sweden), a supplier of metal 3D-printing services primarily for the orthopedics and aerospace sectors, has acquired DiSanto Technology (Shelton, CT), which has been its strategic partner since February 2013. DiSanto is a contract manufacturer serving OEMs in the orthopedics space, providing customers with engineering, development, and production services related to the fabrication of metal and plastic implants and instruments. The combination of Arcam's electron beam melting (EBM) technology and DiSanto´s expertise in orthopedic implant manufacturing will accelerate market adoption of additive manufacturing in the implant industry, Arcam said in a news release.

DiSanto operates a fully equipped and certified facility for the production of finished orthopedic implants with approximately 100 employees. In the last 12 months, DiSanto generated approximately $12 million in revenue. The total purchase price amounts to $15.8 million in cash and stock options.

The acquired business will become a subsidiary of Arcam and continue operating with the existing management team. The acquisition is expected to have a positive effect on Arcam's earnings per share in 2014, according to the company.

"Through this acquisition, Arcam's offering will cover the entire supply chain for our customers: metal powders through AP&C, acquired earlier this year; EBM systems and services through Arcam AB; and finished products through DiSanto," said Arcam CEO Magnus René in a news release. "The acquisition is thus in line with our growth strategy. It complements our technology and product portfolio, and it is immediately accretive."

"With this deal we will be part of the leading company in 3D printing in metals," added Ronald F. Dunn, President, DiSanto Technology. "This will enable us to help customers in rapidly developing product applications and to commercially produce products for them with Arcam's cost-efficient, regulatory-cleared additive technology. Being part of a larger group will also help in accelerating growth to better serve the growing implant market."