Morningstar Analyst: IBM Takeover Of 3D Systems Doesn't Make Sense

Speaking to Benzinga, Morningstar analyst Peter Wahlstrom said that a rumored International Business Machines Corp. IBM takeover of 3D Systems Corporation DDD wouldn’t make sense to him.

“IBM has enough of their own internal issues," he said, "and to then go and try to absorb a new business that has some ties from a software perspective, but they're moving away from hardware and trying to do more in software and services.”

Wahlstrom explained that 3D Systems is a little big of a purchase right now for IBM, which which has been doing “tuck-ins” that it can buy and integrate right away.

Related Link: Morningstar Analyst On 3D Systems Buyout Rumor: 'Now Would Be The Time For Strategic Acquisitions Like This To Happen'

“Something like 3D Systems or anything in the 3D printing space seems counter to strategy and would require some time and small capital,” he said.

While 3D printing is still a rapidly evolving marketplace, Wahlstrom doesn’t think it’s on IBM’s priority list. He added that IBM has bigger fish to fry, and it could be more detrimental to IBM’s core business if it doesn’t address some of those areas.

Shares of IBM were down about 1.24 percent, while 3D Systems was trading 2.23 percent higher.