1. APPLE AQUIRING
3D SYSTEMSMERGERS & ACQUISITIONS
JUNE, 2013
BY RACHA ISMAIL, ISALINE CHARPENTIER, KIKI AMADI MEKOMAM & ANTHONY TERZIAN

2. What is Apple?
 Apple is a corporation founded in January 1977.
 It designs, manufactures and markets mobile communication and
media devices.
 the company commercializes different services, software,
networking solutions and third party digital content and
applications.
 The company recently acquired WiFiSlam, a Silicon Valley startup
that does mapping applications for Smartphones.

3. ORGANIZATIONAL STRUCTURE
 The company is one that thrives on secrecy, gives obsessive
attention to detail, and this approach is not conducive for
friendliness.
 Their culture is also referred to as tough as nails. In addition, their
culture is one of change, with the drive to outperform and succeed
as their major objective.
 Their top down philosophy allows for quick responsiveness and
resolution to situations without involving the corporate headquarters.

4. What is 3D SYSTEMS?
 3D Systems Corporation is a holding company incorporated in
Delaware and operates through several subsidiaries around the
world.
 They are the leading global providers of 3D content-2-print solutions
including 3D printers, print materials, on demand custom
services, and 3D authoring solutions for professionals and consumers.
 They also provide scanners for a variety of medical and mechanical
X-ray film digital archiving. Their 3D printers can print almost anything
from personalized medical devices to functional airplane and car
parts from individualized accessing to customized jewelry and toys.

5. 3D PRINTING MODELS

6. ORGANIZATIONAL STRUCTURE
 They attract and develop experts who are passionate about
helping their customers succeed.
 They identify and act on opportunities to create faster, simple
processes that enhance their ability to serve customers and
maintain competitive posture.
 They are highly motivated in committing and doing their jobs.
 They are guided by set of principles and values that cultivates
teamwork, entrepreneurial spirit, cross-functionality, interaction, and
responsibility.

7. Market Overview
 The world printing machinery and supplies industry is expected to
exceed 21 Billion dollars by 2015 according to global industry
analysts.
 The market is driven by demand for digital color presses, specialty
printers, and inkjet printers.
 The printing market has grown alongside expansion in the PC
market, with many computer owners also owning printers.
 The printing industry has seen the pace of progress pick up due to
digital technology.

8. 3D SYSTEMS - SWOT
STRENGTHS
1) their recurring sales output from print materials
and services revenue segments.
2) they have a proven research and development
department and are able to produce new
products to improve their addictive manufacturing
portfolio
3) they help cut customers cost by reducing their
production lines while increasing their output role
by enabling them produce single items quickly and
cheap rather than export abroad for rare parts.
WEAKNESSES
1) their printers are very expensive to make which results in a high
price for the machines and their end use products.
2) Objects will become a lot easy to copy, distribute, and
pirate, thus making it easier to breach intellectual property laws.
OPPORTUNITIES
1)Their increasing demand from growth markets of
China and India and 3D systems ability to speed up
design process will have a big impact on the
printing industry and may replace mass
manufacturing.
2) once the printers cost decrease and their speed
increases there will be a surge in demand and
manufacturers will look to adapt the technology,
because 3D allows for the creation of parts in
shapes that conventional technique cannot
achieve.
THREATS
1) Expanding too fast and becoming too diversified within the
industry.
2) staying on top of the industry and being able to compete with
start up firms and other businesses that could affect their revenue
or gross profit margin.
3) The established technique of mass manufacturing will not go
away and that they cannot interrelate with 3D printers.
4) the technology does not improve and the cost of 3D printing
machine do not lower to a respectful price.

9. Cost of Merger
 Each company calculates its expenses in different terms. Apple’s
expenses are covered through net sales while 3D systems’ expenses
are covered through their total revenue. In order to evaluate the
potential benefit of acquiring 3D Systems, Apple should either
compare their results in terms of sales expenses or revenues.
In terms of R&D, Apple spends 2% of its net sales revenues while 3D
Systems spends 6.6% of their revenue so we can conclude that both
companies have a healthy attitude in terms of expense
expenditure.
 Sales expenditures represent 34,1 % of 3Dsystems‘ revenues then we
can say that getting together with Apple would be a positive deal
because it would lead to economies of scales thanks to the fact
that Apple has already well-established selling platforms.

10. Strategy
 3D systems is aiming at broadening their target audience by not
only reaching experts, but also individual users.
 According to Apple Press Info, Apple announced changes to
increase collaboration across hardware, software and
services, which supports us to think that this deal could be a good
one.

11. Terms of Process
 we would suggest that the printers produced would go under Apple’s
branding system when targeted to individual users.
 we would advise that the 3D Systems brand name remains when
dealing with professionals.
 In order to retain 3D Systems’ actual customers, current printers should
remain under the same design, however, Apple’s logo would be
printed on it.
 In terms of board of directors, 3D Systems, as of now, is authorized to
issue 5 million shares of preferred stock and in addition to other rights, in
order to keep the board of directors interested in the acquisition and
not lose present stockholders, it is preferred to increase each share
value by 5%. Furthermore, 3D Systems directors will have seats in Apple’s
board of directors so that they can provide their input and be part of
the decision process in terms of the company objective.

12. THANK YOU!!!
QUESTIONS?

13. References
 2013, June). Retrieved from Reuters:
http://www.reuters.com/finance/stocks/companyProfile?rpc=66&symb
ol=AAPL.O
 Apple. (2013). Retrieved from
http://www.apple.com/pr/library/2012/10/29Apple-Announces-
Changes-to-Increase-Collaboration-Across-Hardware-Software-
Services.html
 Faulk, T. (2013, June 10). Retrieved from smartplanet:
http://www.smartplanet.com/blog/bulletin/amazon-launches-3d-
printer-section/21522
 reportlinker. (2013). Retrieved from
http://www.reportlinker.com/ci02068/Printer-and-Copier.html
 Systems, 3. (n.d.). Retrieved from
http://www.3dsystems.com/company/investor/CorProf_13.pdf