In a bold and somewhat unexpected pivot, 3D Systems (NYSE:DDD) a small-cap 3D printing player, recently revealed that it has entered into a definitive agreement with Hubb Global Holdings for the divestiture of its printer-agnostic software assets — Oqton MOS and 3DXpert — while refocusing its R&D efforts on its polymer-centric offering, 3D Sprint. 3D Systems plans to retain a strategic partnership with Hubb so that its metal printing business can continue to utilize 3DXpert under the new ownership. This newly surfaced acquisition interest (or asset transfer) thus provides a strategic lens through which to analyze how Hubb might monetize or synergize with 3D Systems’ software legacy. Let us analyze the biggest drivers that could motivate Hubb Global Holdings to pursue—or complete—this transaction, and what alignment it could yield from 3D Systems’ standpoint.
Control Of Industry‑Agnostic Software Infrastructure
For Hubb Global Holdings, acquiring Oqton MOS and 3DXpert gives it ownership over critical software infrastructure that is independent of any specific hardware brand. These platforms are already positioned as printer‑agnostic, designed to manage mixed fleets, integrate automation, optimize workflows, and scale across diverse OEM environments. By consolidating that capability under its control, Hubb can build a software-first foundation that serves the broader additive manufacturing (AM) ecosystem. From 3D Systems' perspective, offloading this portion of the business allows it to disentangle internal conflicts of interest (i.e. favoring its own hardware) and let the software run free as an industry standard. This separation can accelerate adoption across OEMs and customers who might have been reluctant to use a software platform tied to a hardware vendor. The standardization that flows from such independence could increase demand for metal printing overall, benefiting 3D Systems’ metal hardware business through more adoption downstream. Additionally, Hubb—if it invests in scaling the sales, support, and infrastructure around those platforms—could drive incremental growth that might not have been feasible under 3D Systems’ constrained resources. In essence, Hubb secures a backbone software layer in metal AM, and 3D Systems retains downstream access through its partnership while positioning itself as a small-cap player with sharper focus.
Upside From AI‑Driven Enhancements & Data Monetization
3D Systems has repeatedly emphasized that its future value lies in leveraging AI and machine learning to optimize additive manufacturing workflows, accelerate design-to-production, and improve part quality. The Oqton MOS + 3DXpert platforms hold vast amounts of usage data, from build metrics to failure modes to process parameters, aggregated across OEMs and customers. Under Hubb’s stewardship, those platforms could be further developed into intelligent, data‑driven SaaS offerings with predictive analytics, automated optimization, and subscription models. For Hubb, acquiring these assets positions it not just as a software provider but as a data platform owner in additive manufacturing. 3D Systems benefits because it can remain a key customer (or partner) of the enhanced software, gaining access to improvements and integrations without bearing the full R&D burden. The ability of Hubb to invest more aggressively in new modules, cloud deployment, and continuous updates—especially given fewer capital constraints tied to hardware—could elevate software ROI. This pathway also aligns with industry trends of separating hardware and software monetization streams. For 3D Systems, aligning with a software owner that pushes forward AI-driven enhancements frees its own resources to concentrate on hardware, materials, and high-value applications.
Capital Allocation Efficiency & Focus
3D Systems has publicly stated that it intends to refocus internal resources away from broad software platform development toward its 3D Sprint polymer solution, which is already embedded across thousands of its polymer printers. The sale to Hubb will free up capital, reduce ongoing development costs, and simplify the organizational structure—allowing 3D Systems to allocate scarce R&D dollars where it sees the greatest marginal return. From Hubb’s vantage point, acquiring proven software assets at (presumably) a reasonable multiple offers an opportunity to scale software without the need to rebuild from scratch. The transaction may also generate upfront proceeds or equity adjustments that strengthen 3D Systems’ balance sheet or reduce debt. For 3D Systems, this shift represents a de‑levering of its software burden and a streamlined go‑forward focus on polymer hardware + software synergy. The clarity of role separation—Hubb → software, 3D Systems → polymer systems and applications—may also sharpen each entity’s strategic narrative and investor appeal particularly in the small-cap segment. In short, Hubb gains valuable assets to scale, and 3D Systems gains breathing room to optimize capital deployment around its core strengths.
Market Expansion & Cross‑Sell Opportunities
By absorbing Oqton MOS and 3DXpert, Hubb inherits embedded business relationships across multiple OEMs, service bureaus, and existing customers who already use those platforms. That gives Hubb a ready-made sales channel in the metal additive manufacturing space. For 3D Systems, maintaining a strategic partnership with Hubb ensures continued access to the software layer for metal hardware integration, preserving its ability to cross-sell printers and materials. Additionally, as the platforms expand into new geographies or verticals under Hubb’s push, 3D Systems could benefit from downstream network effects—i.e. when more customers adopt Oqton/3DXpert, the demand for compatible metal printers may rise. The arrangement may also open doors for joint go-to-market efforts: 3D Systems can continue to bundle hardware and polymer software while relying on Hubb’s software infrastructure for mixed fleet management. This cross-sell synergy helps 3D Systems’ hardware business while reducing the friction for customers managing heterogeneous printer inventories. In essence, the acquisition gives Hubb a distribution and usage footprint in metal AM, and 3D Systems a sustained channel for its hardware and materials.
Final Thoughts
Source: Yahoo Finance
We can see the 3D Systems stock witnessing a strong upward trajectory over the past 3 months which is not surprising given the company’s low valuation mulltiples. 3D Systems’ latest trailing and forward multiples are already compressed: forward EV/revenue multiples hover near ~1.21× (with prior quarters as low as ~0.91×), and its EV/EBITDA multiple swings into negative territory (e.g. –25.39x most recently) reflecting its challenging profitability profile. Meanwhile, its trailing EV/EBITDA sits at –5.55×, and EV/EBIT gross profit multiples remain low (~3.14×) under current financials. These metrics suggest to any acquirer that upside would require a value‑creation turnaround rather than reliance on stable cash flow. Overall, we believe that Hubb’s interest (or proposed acquisition) may be justified by the software’s strategic architecture and growth potential; yet whether the execution and alignment deliver sufficient value to outpace inherent risks will be tested in the quarters ahead.
