3D Printing Industry: Stratasys Merges with Desktop Metal

For several months, 3D printer manufacturer Nano Dimension has been trying to acquire one of the pioneers of industrial additive manufacturing, Stratasys. Today it was announced that Stratasys is now merging with 3D printing company Desktop Metal.

The two companies have reached a definitive agreement under which the companies will combine in an all-stock transaction valued at approximately $1.8 billion. While Stratasys is one of the leading companies in the polymer space, Desktop Metal is a major player in metal 3D printing as well as mass additive manufacturing. As a result, the companies’ portfolios complement each other well. Analysts project that Stratasys and Desktop Metal will have combined revenues of $1.1 billion in 2025.

Under the terms of the agreement, which was unanimously approved by the boards of directors of both companies, Desktop Metal shareholders will receive 0.123 shares of Stratasys common stock for each of their Class A shares of Desktop Metal common stock. This exchange represents an approximate value of $1.88 per share of Desktop Metal Class A common stock, based on the closing price of Stratasys common stock of $15.26 on May 23, 2023, and the transaction is expected to close in the fourth quarter of 2023. Upon completion of the transaction, current Stratasys shareholders will own approximately 59% and existing Desktop Metal shareholders will own approximately 41% of the combined company, in each case on a fully diluted basis.

“Today is an important day in Stratasys’ evolution,” said Dr. Yoav Zeif, CEO of Stratasys. “The combination with Desktop Metal will accelerate our growth trajectory by uniting two leaders to create a premier global provider of industrial additive manufacturing solutions. With attractive positions across complementary product offerings, including aerospace, automotive, consumer products, healthcare and dental, as well as one of the largest and most experienced R&D teams, industry-leading go-to-market infrastructure and a robust balance sheet, the combined company will be committed to delivering ongoing innovation while providing outstanding service to customers. We look forward to building on the complementary strengths of the combined business and leveraging the strong brand equity across the portfolio to deliver enhanced value to shareholders, customers and employees.”

“We believe this is a landmark moment for the additive manufacturing industry,” said Ric Fulop, Co-founder, Chairman and CEO of Desktop Metal. “The combination of these two great companies marks a turning point in driving the next phase of additive manufacturing for mass production. We are excited to complement our portfolio of production metal, sand, ceramic and dental 3D printing solutions with Stratasys’ polymer offerings. Together, we will strive to build an even more resilient offering with a diversified customer base across industries and applications in order to drive long-term sustainable growth. We look forward to combining with Stratasys to deliver profitability while driving further innovation for a larger customer base and providing expanded opportunities for our employees.”