Stratasys Ltd., a leading 3D printing company, has announced its plans to acquire fellow 3D printing firm Desktop Metal Inc. in a landmark $1.8 billion deal. While the companies have referred to it as a “merger,” the terms of the agreement indicate that Stratasys will be the acquiring party, with Desktop Metal surviving the merger as a wholly owned subsidiary.
Under the terms of the deal, the new board of Stratasys will consist of 11 members, with five appointed by Stratasys and five by Desktop Metal. Stratasys CEO Yoav Zeif will serve as the 11th member, and Desktop Metal CEO Ric Fulop will assume the role of board chairman.
Fulop expressed his excitement about the deal, stating that it represents a significant turning point in driving the next phase of additive manufacturing for mass production.
The boards of both companies have already approved the acquisition, although it is still subject to shareholder and regulatory approval. If all goes as planned, the transaction is expected to be finalized in the fourth quarter of this year.
It’s worth noting that Stratasys had previously implemented a “poison pill” plan last year in response to rival firm Nano Dimension’s acquisition of 12% of its shares. The plan was designed to safeguard the long-term interests of Stratasys and its shareholders. However, Nano Dimension has not given up on its pursuit of acquiring Stratasys and recently launched a hostile all-cash offer to increase its stake in Stratasys to between 53% and 55%.
In response to Nano Dimension’s latest offer, Stratasys has stated that it will carefully review and evaluate the proposal. The situation adds another layer of complexity to the 3D printing industry, with Stratasys positioning itself for expansion while facing ongoing acquisition attempts.
The acquisition of Desktop Metal positions Stratasys as a formidable player in the 3D printing market, with the potential to drive innovation and mass production capabilities in the additive manufacturing industry.
