Stratasys and Desktop Metal to Combine

Stratasys and Desktop Metal have entered a definitive agreement to combine in an all-stock transaction. This transaction is said to be valued at around $1.8 billion and will combine Stratasy’s polymer capabilities with Desktop Metal’s mass production capabilities to provide a 1-stop manufacturing group, according to a press release from the companies.

This agreement has been unanimously approved and will enable Desktop Metal stockholders to receive 0.123 ordinary shares of Stratasys for each share of Desktop Metal Class A common stock, valuing at $1.88 per share. Stratasys shareholders will own approximately 59% of the combined company, per the numbers listed in the press release. This transaction, which is expected to finalize in the 2023 Q4, will provide growth opportunities in the manufacturing sphere, according to Stratasys CEO Dr Yoav Zeif.

“The combination with Desktop Metal will accelerate our growth trajectory by united 2 leaders to create a premier global provider of industrial additive manufacturing solutions,” Dr Zeif says in the press release. “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.”

This transaction is said to offer a plethora of benefits for all groups, including a diversified customer base, opportunity to synergy, the combination of unique intellectual portfolios, and more. Stratasys and Desktop Metal will combine to expand the world of additive manufacturing, according to co-founder, Chairman, and CEO of Desktop Metal, Ric Fulop.

“The combination of these 2 great companies marks a turning point in driving the next phase of additive manufacturing for mass production,” Fulop says in the press release. “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.”