Stratasys and Desktop Metal have announced their plans to merge in an all-stock transaction valued at approximately $1.8 billion. The merger will combine Stratasys’ expertise in polymer-based 3D printing with Desktop Metal’s leadership in industrial mass production, creating a formidable additive manufacturing company capable of meeting the evolving needs of manufacturing customers.
The combined entity, expected to generate $1.1 billion in revenue by 2025, aims to capitalize on the significant growth potential in the additive manufacturing market, with a total addressable market projected to exceed $100 billion by 2032.
According to the terms of the agreement, unanimously approved by the Boards of Directors of both companies, Desktop Metal stockholders will receive 0.123 ordinary shares of Stratasys for each share of Desktop Metal Class A common stock. Based on the closing price of a Stratasys ordinary share on May 23, 2023, this values each share of Desktop Metal Class A common stock at approximately $1.88. Following the completion of the transaction, expected in Q4 2023, existing Stratasys shareholders will hold approximately 59% of the combined company, while legacy Desktop Metal stockholders will hold approximately 41% on a fully diluted basis.
Dr. Yoav Zeif, CEO of Stratasys, expressed enthusiasm for the merger, highlighting the complementary strengths of the two companies and the enhanced value they can deliver to shareholders, customers, and employees. Ric Fulop, Co-founder, Chairman, and CEO of Desktop Metal, emphasized the significance of the merger in propelling the additive manufacturing industry forward, unlocking new possibilities for mass production, and driving long-term sustainable growth.
The merger between Stratasys and Desktop Metal is poised to create a premier global provider of industrial additive manufacturing solutions, with a diversified customer base across industries and applications, and a commitment to ongoing innovation and customer service.