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

When asked about a rumor of General Electric Company (NYSE: GE) interested in a buyout of 3D Systems Corporation (NYSE: DDD), Morningstar Analyst Barbara Noverini told Benzinga that now would be the time for strategic acquisitions like this to happen because of how low 3D printing valuations have come down.

Noverini added that much has been said by GE lately regarding its use of 3D printing for manufacturing, as well as research and development.

“The recent announcement regarding establishment of 3D-printing center in Pennsylvania signaled its commitment to the technology recently,” she said. “Acquiring one of the leaders in the space -- along with its associated intellectual property -- would be a way for them to quickly advance their overall expertise.”

The only potential disconnect with a GE-3D Systems transaction that Noverini saw was on the consumer side. She explained that GE has actively reduced its exposure to consumer-related processes in an attempt to shore up its industrial businesses.

That being said, Noverini also said she can see where potential benefits on the industrial side would outweigh the relatively small consumer exposure.

3D Systems traded about 1.5 percent higher in Tuesday's session, while GE traded up about 0.47 percent.