Protolabs Buys 3D Hubs Online Manufacturing Platform

Once integrated, 3D Hubs' customers will have access to a broad set of manufacturing capabilities, pricing and lead-time options, delivered through digitally enabled e-commerce model.

Once integrated, 3D Hubs' customers will have access to a broad set of manufacturing capabilities, pricing and lead-time options, delivered through digitally enabled e-commerce model.

Image courtesy of Protolabs/3D Hubs.


Protolabs has entered into a definitive agreement to acquire 3D Hubs, an online manufacturing platform that provides engineers with on-demand access to a global network of approximately 240 premium manufacturing partners. The transaction creates a comprehensive digital manufacturing offer for custom parts, providing Protolabs with a network of manufacturing partners to fulfill capabilities outside of its current envelope, as well as a broader offering of pricing and lead time options.

This is the largest acquisition in Protolabs’ 21-year history, with total consideration of $280 million to be funded with cash on hand and equity at close, and up to an additional $50 million of contingent consideration, according to the company. The two companies will provide customers with a comprehensive digital manufacturing service portfolio, combining Protolabs’ speed and in-house production with 3D Hubs’ ability to produce complex, custom parts through its network of premium manufacturing partners, the companies report.

“The addition of 3D Hubs provides Protolabs a platform to evolve our service model to provide unprecedented manufacturing flexibility to our customers,” says Rob Bodor, Protolabs’ current VP and GM of the Americas and incoming president and chief executive officer. “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.”

3D Hubs has facilitated the production of over 6 million custom parts and products through its digital platform. 3D Hubs provides customers with instant pricing and design feedback, and orders are fulfilled through vetted premium manufacturing partners in over 20 countries worldwide, offering manufacturing capacity and a range of manufacturing capabilities at various competitive pricing levels.

“The entire 3D Hubs team is thrilled to join Protolabs and continue to revolutionize the manufacturing industry through innovation. At 3D Hubs, our goal is to empower companies to create revolutionary products through supply chain efficiency and reliability. We are confident that partnering with Protolabs will help us advance that mission,” says Bram de Zwart, co-founder and chief executive officer at 3D Hubs.

“3D Hubs’ company culture lives and breathes engineering and fast-paced innovation; our team is very excited to partner with Protolabs to build the best on-demand manufacturing solution imaginable,” says Brian Garret, 3D Hubs’ co-founder and chief product officer.

Under the agreement terms, closing consideration of $280 million will be funded with $130 million in cash and $150 million in Protolabs common stock. An additional $50 million of contingent consideration is payable subject to performance-based targets over two years after close, funded with 50% cash and 50% Protolabs common stock. Protolabs has also established an employee incentive fund payable to 3D Hubs employees based on achievement of both financial performance and employee retention targets.

Protolabs anticipates the acquisition of 3D Hubs will accelerate its revenue growth rate and be marginally dilutive to non-GAAP earnings per share in 2021. 3D Hubs’ 2020 revenue is estimated to be $25 million and the company’s revenue has had a compound annual growth rate of over 200% since 2017. The transaction is expected to close by the end of January, subject to customary closing conditions.

“The acquisition of 3D Hubs is part of the continued evolution of Protolabs as the digital manufacturing leader, serving more and more of our customers’ needs,” says Vicki Holt, Protolabs’ chief executive officer. “Protolabs’ leading in-house technology-enabled manufacturing services combined with 3D Hubs’ global network of premium manufacturing partners will yield the greatest value to our customers for years to come.”

Sources: Press materials received from the company and additional information gleaned from the company’s website.

More Protolabs Coverage

Protolabs Company Profile

Share This Article

Subscribe to our FREE magazine, FREE email newsletters or both!

Join over 90,000 engineering professionals who get fresh engineering news as soon as it is published.




About the Author

DE Editors's avatar
DE Editors

DE’s editors contribute news and new product announcements to Digital Engineering.
Press releases may be sent to them via DE-Editors@digitaleng.news.

Follow DE
#24788