3D printing firms Stratasys, Desktop Metal merging in $1.8-billion deal
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The deal unites the polymer business of Stratasys with the industrial mass production of Desktop Metal’s brands.
Industrial 3D printer maker Stratasys Ltd. is merging with peer Desktop Metal Inc. in an all-stock transaction valued at about US$1.8 billion.
Officials with Stratasys in Israel and Minnesota and with Desktop Metal in Burlington, Mass., said that the deal “unites the polymer strengths of Stratasys with the complementary industrial mass production leadership of Desktop Metal’s brands.”
Stratasys, which operates in industries such as aerospace, automotive, and consumer products, said that it seeks to diversify its customer base by offering designing, prototyping, and tooling to mass production under the combined entity.
Stratasys shareholders will own about 59 per cent of the combined company, with legacy Desktop Metal stockholders owning the remaining 41 per cent.
Stratasys and Desktop Metal are expected to generate US$1.1 billion in 2025 revenue, “with significant upside potential in a total addressable market of more than [US]$100 billion by 2032,” the companies said.
“We are excited to complement our portfolio of production metal, sand, ceramic and dental 3D printing solutions with Stratasys’ polymer offerings,” Desktop Metal chief Ric Fulop said.
The deal has been unanimously approved by the boards of directors of both companies; if approved by shareholders, the transaction is expected to close in the fourth quarter of this year.