LONDON, UK: Xaar PLC, the leading inkjet printing technology group, has conditionally agreed terms with Stratasys Solutions Limited to sell Xaar’s interest in Xaar 3D to Stratasys.
Stratasys Solutions Limited is a partner of Xaar Plc in 3D printing business.
Whilst Xaar 3D has continued to make progress this year there have been delays to the development of Xaar 3D products as a result of the COVID-19 pandemic.
As a direct consequence of these delays it was anticipated that Xaar 3D would require more investment than originally planned. Having considered all options for the future financing and ownership structure of Xaar 3D the Board of Xaar has conditionally agreed with Stratasys to amend the terms of the Call Option pursuant to the terms of a conditional call option amendment agreement entered into on 6 October 2021.
This agreement will provide Xaar 3D with the best opportunity to complete the commercialisation of the product range in the shortest time, would lead to an immediate injection of cash and will enable Xaar to focus on its core business. Xaar will be entitled to receive royalties on products and services sales for up to 15 years.
The aggregate of the initial consideration together with the 3.0 per cent revised earn-out and the earn-out payments is, therefore, up to $33.83 million.
John Mills, Chief Executive Officer, commented: “This agreement will provide Xaar 3D with the best opportunity to continue its progress and leadership in the field of industrial 3D printing. We have enjoyed our partnership with Stratasys and look forward to continuing to work with them to supply printheads to Xaar 3D and share in the long-term success of the business. The agreement will also allow us to focus on our core business and other opportunities in the market that will support our long-term growth strategy.”
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5 Oct, 4:35 pm GMT+1 ·Disclaimer