Global print and digital document corporation Xerox has sold its additive manufacturing business unit, Elem Additive Solutions, to US-based metal additive manufacturing company ADDiTEC.
The sale of Xerox’s additive manufacturing capabilities comes as the company looks to refocus its strategic priorities and investments onto its core capabilities and offerings. These include print, IT and digital services. As part of these efforts, Xerox has also donated PARC to SRI International, and sold the Xerox Research Center of Canada to Myrant Capital Partners earlier this year.
Whilst the financial terms of this transaction have not been disclosed, the existing Xerox Elem Additive team is set to transition into ADDiTEC as part of the deal.
“In evaluating partners for this sale, it was critical we found a company with a shared mission that would sustain and advance Elem Additive’s innovation into the future,” commented Xerox Chief Executive Officer Steve Bandrowczak. “We are confident that ADDiTEC is the right partner and look forward to witnessing both teams’ shared success on the road ahead.”
“We’re very excited for Elem Additive to join our team,” added Brian Matthews, founder and Chief Executive Officer at ADDiTEC. “We saw incredible value in liquid metal print technology and Elem Additive’s success supplements our growth efforts as we continue to develop new offerings and bring to market our turnkey metal additive manufacturing systems.”
Elem Additive Solutions
Elem Additive Solutions launched almost four years ago following Xerox’s acquisition of metal 3D printing startup Vader Systems in 2019. Soon after, Xerox released the ElemX Liquid Metal 3D printer under the Elem Additive Solutions banner. According to Xerox, The ElemX was developed to be a safer and simpler metal 3D printing solution, addressing supply chain resiliency within transportation, aerospace, defense and industrial manufacturing verticals.
In 2021 Xerox announced a strategic collaboration with the US Naval Postgraduate School (NPS). This research collaboration was initiated to explore the potential for 3D printing to transform how the US military supplies its deployed forces. As part of this agreement, the NPS installed a Xerox ElemX metal 3D printer on its university campus.
This partnership was followed a year later by the announcement that the US Navy had installed ElemX onto the USS Essex, a Wasp-class amphibious assault ship. This “first-of-its-kind installation” saw the USS Essex become a test bed to assess the value of the metal 3D printer for naval operations.
“Having this printer aboard will essentially accelerate, enhance and increase our warfighting readiness. The capabilities of the 3D printer will enable Essex to become more self-sufficient,” explained Lt. Cmdr. Nicolas Batista, the Aircraft Intermediate Maintenance Department (AIMD) officer of the Essex.
Additionally, Last April Xerox announced that Elem Additive Solutions had signed a partnership with Rochester Institute of Technology, who purchased and installed an Elem 3D printer at their AMPrint Center in Henrietta, NY. This followed the announcement of a strategic collaboration between Elem Additive Solutions and industrial manufacturing firm Siemens. Through this agreement, Siemens added an ElemX to its 3D printer fleet at the Charlotte Advanced Technology Collaboration Hub (CATCH).
Advanced Manufacturing service provider Vertex Manufacturing is also a customer of Elem Additive Solutions, having installed a ElemX 3D printer at its Cincinnati facility in February 2022. Through this collaboration, Vertex Manufacturing has bolstered its contract manufacturing services, and provides aluminum 3D printing capabilities to its industrial customer base.
ADDiTEC has confirmed that it will continue to support these customers and partners during the transition process.
Recent acquisitions in additive manufacturing
ADDiTEC’s purchase of Elem Additive Solutions reflects a wider trend of sales, acquisitions, and mergers within the current additive manufacturing industry.
Notably, the ongoing saga surrounding the 3D Systems and Stratasys merger shows little sign of abating. Most recently, following the publication of both company’s Q2 2023 financial results, 3D Systems’ President and CEO Dr. Jeffrey Graves expressed frustration that the deal is yet to be finalized.
“Candidly, we expected this transaction to be announced by now and are frustrated by the pace and the lack of any engagement on the merger agreement we delivered to Stratasys signed in escrow on July 13. We remain committed to pursuing this powerful combination for the benefit of our collective shareholders, but can only conclude the merger if Stratasys shares our commitment,” commented Dr. Graves.
Elsewhere, earlier this year it was announced that Chicago-based private equity firm CORE Industrial Partners had completed the acquisition of on-demand manufacturing service provider Phoenix Proto Technologies. This acquisition marked the latest step in the firm’s ongoing effort to expand its additive manufacturing portfolio. To date, CORE has invested $700 million into North America’s lower middle-market manufacturing, industrial technology, and industrial service businesses.
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Featured image shows Xerox Corp. headquarters in Norwalk, Conn. Photo via Bloomberg News.
