Israeli 3D printing company Stratasys (Nasdaq: SSYS) and U.S. 3D printing company Desktop Metal, Inc. (NYSE: DM) today announced that they have entered into a definitive agreement to merge in an all-stock transaction valued at $1.8 billion. The merger aims to combine the polymer strengths of Stratasys with the complementary industrial mass production leadership of Desktop Metal.
Stratasys and Desktop Metal say they are expected to generate $1.1 billion in revenue in 2025, with significant upside potential in a market of over $100 billion by 2032.
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 Class A common share of Desktop Metal. That’s worth about $1.88 per Desktop Metal Class A common stock based on a Stratasys common stock closing price of $15.26 on Tuesday. When the merger is complete, Stratasys shareholders will own 59% of the combined company, and former Desktop Metal shareholders will own 41%. The merger is expected to be finalized in the fourth quarter of 2023.
Stratasys CEO, Dr. Yoav Zeif, said, “Today is an important day in the evolution of Stratasys. The combination with Desktop Metal will accelerate our growth trajectory by bringing together two leaders to create a leading global provider of industrial additive manufacturing solutions. product offerings, including aerospace, automotive, consumer products, health and dental, as well as one of the largest and most experienced R&D teams, go-to-market infrastructure industry-leading and a strong balance sheet, the combined company will be committed to continuous innovation while providing exceptional service to customers. We look forward to leveraging the complementary strengths of the combined business and leveraging the strong brand value across the portfolio to deliver increased value to shareholders, customers and employees.
Desktop Metal President Ric Fulop added, “We believe this is a historic moment for the additive manufacturing industry. 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 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 diverse customer base across all industries and applications to drive long-term sustainable growth. We look forward to partnering with Stratasys to drive profitability while driving innovation for a broader customer base and providing expanded opportunities for our employees.”
Rehovot-based Stratasys has been subject to a hostile takeover by a cash-rich Israeli 3D printing company Nano dimension (Nasdaq: NNDM) in recent months. In response, Stratasys took a time-limited shareholder rights plan (poison pill) approach to prevent the takeover, which was at a company valuation of around $1.2 billion.
Published by Globes, Israel business news – en.globes.co.il – May 25, 2023.
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