(Alliance News) - Digital inkjet firm Xaar PLC on Thursday announced a "significant" agreement with partner Stratasys Ltd for Xaar's 3D printer business.
Xaar shares were 19% higher on Thursday morning in London at a price of 70.60 pence each.
Stratasys will take 20% of Xaar's holding in the 3D printer business for USD10 million, and it also will get a call option to buy the remaining 55% it does not already hold for a minimum of USD33 million, exercisable for over three years.
Stratasys' involvement in Xaar's 3D printing business dates back to July 2018, when it took a 15% stake in the business. At the time, it had been granted an option to take this up to 45%, and, prior to Thursday's announcement, it had already decided to exercise part of that option to take its holding to 25%, for USD4 million.
The new agreement raises the Stratasys holding in Xaar 3D to 45%.
Xaar Chief Executive Doug Edwards said: "Xaar 3D has great potential and we look forward to continuing to work with Stratasys to develop its full potential in this deeper relationship.
"I am pleased this transaction will create good value for Xaar shareholders and unlocks the ability for more significant value in due course."
Omer Krieger at Stratasys added: "Xaar 3D has made significant progress over the past year and we see benefits to Stratasys in extending its investment in Xaar 3D's innovative High Speed Sintering based solutions. We look forward to continue developing the technology together with Xaar and believe the combined expertise of both parties will lead to exploitation of the technology's promising potential.
"This continues our company's strategy of complementing our own robust R&D efforts with partnerships and investments in other innovative companies to develop new capabilities and products that create new value to our customers."
Xaar (XAR)