Protolabs, 3D-Print Metal Fabricator, Up on Output-Platform Deal

Protolabs, a 3D-printing metal fabricator, agreed to pay as much as $330 million for 3D Hubs, an online manufacturing platform
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Protolabs  (PRLB) - Get Report jumped Tuesday after the 3D-printing metal fabricator said it definitively agreed to buy 3D Hubs, the Amsterdam online manufacturing platform, for as much as $330 million.

The Maple Plain, Minn., company said in a statement it would pay $130 million cash and $150 million of stock for 3D Hubs. Protolabs will pay as much as an additional $50 million, half in cash and half in stock, if 3D Hubs meets certain targets over two years. 

Adding 3D Hubs to the Protolabs service model gives customers more manufacturing flexibility, said Rob Bodor, vice president and general manager for the Americas at Protolabs, in a statement. 

Bodor is set to become president and chief executive of Protolabs on March 1. The company had said in mid-December that Vicki Holt would retire after seven years at the helm.

3D Hubs' revenue for 2020 is an estimated $25 million. Protolabs said it expected the deal to cut adjusted earnings in 2021 "marginally." The companies hope to close the deal this month, subject to conditions they did not specify.

3D Hubs was founded in 2013 and has facilitated the production of more than six million custom parts and products. The company says it gives customers instant pricing and design feedback. It fulfills orders through manufacturing partners in more than 20 countries. 

The Amsterdam company has raised more than $30 million in funding from Balderton Capital, EQT Ventures, Endeit Capital, Hearst Ventures, DOEN, Future Shape, Rockstart, and other investors.

At last check Protolabs shares were trading up 5% at $177.02. The stock has nearly tripled off its 52-week low above $63, set last March. It traded at nearly $204 late in December.