Protolabs, the US-based provider of a manufacturing service for custom parts, has acquired The Netherlands-based 3D Hubs, an online platform that provides engineers with on-demand access to a network of approximately 240 manufacturing partners around the world.
The purchase price is $280 million, which Protolabs is paying with $130 million in cash and $150 million in its common stock. An additional $50 million is payable subject to performance-based targets over two years after close, split evenly in cash and stock.
Interestingly, Protolabs has also established an employee incentive fund payable to 3D Hubs employees “based on achievement of both financial performance and employee retention targets”.
Founded in 2013, 3D Hubs says it has facilitated the production of over 6 million custom parts and products through its digital platform to date.
The company was backed by Balderton Capital, EQT Ventures, Endeit Capital, Hearst Ventures, DOEN Participaties, Future Shape, and Rockstart, among others.
“The addition of 3D Hubs provides Protolabs a platform to evolve our service model to provide unprecedented manufacturing flexibility to our customers,” said Rob Bodor, Protolabs’ current VP and GM of the Americas and incoming President and CEO.
“Our combined organizations will provide the market an industry-leading digital manufacturing solution to serve their needs from idea to prototype to full end-use part production. Together we can fulfill nearly every custom manufacturing need across the product life cycle,” he added.