Xaar PLC (LSE:XAR), the inkjet technology specialist, has agreed to sell its 3D printing business to partner Stratasys Solutions for up to US$33.83mln.
It said while Xaar 3D has continued to make progress this year, there had been delays to the development of its products as a result of the COVID-19 pandemic.
As a result, Xaar 3D would require more investment than originally planned.
It said the agreement with Stratasys would give Xaar 3D with the best opportunity to complete the commercialisation of its product range in the shortest time, would lead to an immediate injection of cash and would enable Xaar to focus on its core business. Xaar will be entitled to receive royalties on products and services sales for up to 15 years.
Xaar chief executive John Mills said: "This agreement will provide Xaar 3D with the best opportunity to continue its progress and leadership in the field of industrial 3D printing. We have enjoyed our partnership with Stratasys and look forward to continuing to work with them to supply printheads to Xaar 3D and share in the long-term success of the business. The agreement will also allow us to focus on our core business and other opportunities in the market that will support our long-term growth strategy."
Xaar's shares have lost 3.81% to 151.6p by early afternoon trading.