Materialise has acquired ACTech, a German-based company which specialises in the production of limited runs of highly complex cast metal parts for the automotive and aerospace industries, and for machine and plant manufacturers. According to the companies, the transaction aims to bring together Materialise’s Additive Manufacturing solutions and software, and the casting experience of ACTech, to provide a a comprehensive metal manufacturing offering.

The acquisition of ACTech’s knowledge and in-house infrastructure is expected to enable Materialise to accelerate the development of its existing metal competence centre and strengthen its position in the market for the production and delivery of unique and complex metal additively manufactured parts.

“ACTech knows metal and how to shape it to production standard, and we know Metal 3D Printing,” stated Wilfried Vancraen, founder and CEO of Materialise. “Bringing those two competencies together is vital to the delivery of high added-value metal 3D-printed parts for specialised applications.”

The acquisition will also enable Materialise to develop and improve its software suite for metal Additive Manufacturing through close collaboration with ACTech’s team and its metal manufacturing environment. In turn, ACTech customers will gain immediate access to metal AM parts for pre-production design iterations.

“Through the acquisition, we are further enhancing the manufacturing and software backbone position that will support the entire industry. For over twenty-seven years, we have always been there as a leading, comprehensive provider of solutions in industrial polymers printing,” continued Vancraen.

“That position has enabled us to both develop and serve a growing demand for certified manufacturing with dedicated software and solutions. By joining forces with ACTech, we will accelerate that same strategy for metal manufacturing.”

Materialise states that it acquired ACTech based on a total enterprise value of $52.9 million for a total cash payment of $42.7 million to the sellers. In 2016, ACTech realised German GAAP revenue of $40.3 million with $9.6 million in EBITDA and $2.7 million in net profit.

Materialise financed $32.9 million of the acquisition price through long-term bank financing that carries average interest rates of approximately 1.1%, and used a portion of its available cash for the remainder. The transaction is expected to be accretive to EPS immediately upon closing.