We provide comprehensive 3D printing and digital manufacturing solutions, including 3D printers, materials, software, advanced manufacturing services, and digital design tools for plastic, metal, and bio-inks. Our solutions support advanced applications in two key vertical industries: healthcare (including dentistry, medical equipment, personalized health services, and regenerative medicine) and industrial (including aerospace, defense, transportation, and general manufacturing). We market our products and services through subsidiaries in North and South America (collectively referred to as the "Americas"), Europe and the Middle East (collectively referred to as "EMEA"), and the Asia Pacific region. We have 35 years of experience and expertise, which has proven to be essential to our development of ecosystems and end-to-end digital workflow solutions, enabling customers to optimize product design, transform workflows, bring innovative products to market and promote New business model.
We provide customers with comprehensive 3D printers, materials, software, digital design tools, 3D scanners and virtual surgery simulators.
We work closely with our customers to optimize the performance of our materials in their applications. Our expertise in materials science and formulation, combined with our processes, software and equipment, allows us to provide unique solutions and help our customers choose the materials that best meet their needs and have the best cost and performance results .
As part of our solution approach, the printers we currently offer (except direct metal printers and bioprinters) have built-in intelligence that can make them an integrated closed system. For these integrated printers, we provide materials specifically designed for these printers, which are packaged in smart ink cartridges and utilize a material delivery system. These integrated materials are designed to enhance system functionality, productivity, reliability and material shelf life, and also provide our customers with built-in quality management systems and fully integrated workflow solutions.
The 3D printers we sell have a warranty period of 90 days to one year. After the warranty period, we usually provide a service contract to enable our customers to continue to provide service and maintenance services. These service contracts provide different levels of support and options, and are priced accordingly. Our service engineers regularly conduct regular preventive maintenance visits to customer sites, we provide training to our partners to enable them to perform these services, and we are adding remote monitoring and maintenance capabilities through our 3DConnect software.
We also provide upgrade kits for some of our printers from time to time to enable our existing customers to take advantage of new or enhanced printer features. In some cases, we have stopped providing upgrade support and maintenance agreements for some older printers.
Based on internal analysis in the first half of 2021, we estimate that the average printer we sell will generate an average lifecycle revenue of approximately US$287,000, including revenue attributable to hardware, software, services, and materials, resulting in lifetime value to customer acquisition costs ( LTV / CAC) ratio is about 5.5 times.
According to the market scale announced by Wohler's Associates and SmarTech, we estimate that the total market for 3D printing in 2020 will be approximately $12.6 billion, and it is expected that the market will grow at a compound annual growth rate of approximately 17% in the next three years. By 2026, the 3D printing market The total is expected to reach 37 billion U.S. dollars. The estimated market size is based on median data compiled by nine different market analysts based on their review of the 2020 market.
New strategic focus and restructuring
Our business portfolio maintains a good balance between end markets and geographies, including important companies that provide services to key industries such as healthcare, aerospace, and durable goods. For the three months ended September 30, 2021, approximately 54% of our revenue was derived from US operations and approximately 46% was derived from businesses outside the US (excluding contributions from divested units). In addition, our technology and process knowledge can make more than 700,000 production parts every day through additive manufacturing. In May 2020, our CEO and President Dr. Jeffrey Graves was hired. Dr. Graves conducted a preliminary assessment of the company and announced a strategic focus and reorganization on August 5, 2020 to align our cost structure with revenue levels and reorganize our business into two key vertical industries: Healthcare and industry.
We completed the restructuring in the second quarter of 2021. Cost reduction work includes reducing the number of facilities and checking all aspects of our manufacturing and operating costs. We mainly incurred cash expenses for severance payments, facility closures and other costs in the second half of 2020, and continued to incur additional expenses when all restructuring activities were completed in the second quarter of 2021. We incurred severance payments, facility closures, and other costs to complete these tasks totaling $21.1 million, including $6.4 million in non-cash expenses, which are included in facility closure costs.
We also divested some businesses that did not meet our strategic focus on additive manufacturing. In January 2021, we sold Cimatron Ltd. for approximately US$64.2 million, which operates our Cimatron integrated CAD/CAM software for the tool business and its GibbsCAM CNC programming software business. In August 2021, we sold the Simbionix series of surgical simulators for US$305 million, and in September 2021, we sold the on-demand manufacturing business for US$82 million.
In November 2021, we acquired Oqton, a software company that is a leader in creating a new intelligent, cloud-based manufacturing operating system (MOS) platform. The platform is tailored for flexible production environments that increasingly utilize a range of advanced manufacturing and automation technologies in production workflows, including additive manufacturing (AM) solutions. Cloud-based solutions use Industrial Internet of Things (IIOT), artificial intelligence (AI) and machine learning technologies to provide customers with solutions to automate their digital manufacturing workflows, expand their operations, and strengthen their competitive position. The purchase price is US$183 million, which includes US$108 million in cash and the remainder of the company’s common stock.
In October 2021, we reached an agreement to acquire Volumetric, a biotechnology company whose mission is to develop the ability to use bioprinting methods to make human organs, with a focus on the human liver and the basic technologies required to create these highly complex biological structures. For this acquisition, we plan to build world-class research capabilities in Houston, Texas. The transaction consideration includes a settlement payment of 45 million U.S. dollars, adjusted according to customary transactions, and an additional consideration of up to 355 million U.S. dollars (we will record it as compensation according to US generally accepted accounting principles), which can be realized and paid until December 31, 2035, and An important milestone has been achieved in demonstrating human applications. All of these payments consist of approximately half of the cash and half of the company’s common stock. If all milestones are completed, the total purchase price of this acquisition will be US$400 million. Delivery is subject to customary conditions and is expected to be completed in the fourth quarter of 2021.
In October 2021, we also expanded our joint development program with United Therapeutics. The program was first established in 2017 and combines our 3D printing expertise with United Therapeutics' expertise in regenerative medicine and biotechnology. So far, the program has focused on developing the ability to print human lung stents to create an unlimited supply of human lungs without immunosuppression. The long-term goal is to allow all patients with advanced lungs to receive transplanted diseases, which will enable them to Enjoy longevity and an active life. Based on the progress made in achieving this goal, the plan is now being expanded to include two additional human organs, and the currently designated support will continue until 2025.
3D Systems Corporation published this content on November 10, 2021, and is solely responsible for the information contained therein. UTC time November 10, 2021 21:56:31 distributed by the public, unedited and unaltered.