Israeli 3D printer company Objet Ltd. has abandoned plans for an IPO, and will merge with US 3D printer company Stratasys Inc. (Nasdaq: SSYS). The merger will create a $1.4 billion company, based upon the closing price of Stratasys’s share on Friday.
Both Objet and Stratasys develop and manufacture 3D printers, which are mainly used to produce prototypes of products in a range of industries. When the deal is closed, Stratasys shareholders will own 55% of the merged company and Objet shareholders will own 45%. This values Objet at $630 million.
Last year, Objet filed a preliminary prospectus with the US Securities and Exchange Commission (SEC), and the company was expected to file a prospectus for an offering two week ago, to raise $100 million at a company value of $500 million in April or May.
The combined company will operate under the name Stratasys Ltd. It will have dual headquarters in Eden Prairie, Minnesota, and Rehovot, Israel. The company will continue to trade on Nasdaq under the ticker SSYS. Stratasys chairman and CEO Scott Crump will become chairman of the combined company. Objet chairman Elchanan Jaglom will serve as chairman of the executive committee of the combined company.
Two weeks ago, "Globes" commented, "At the same time, however, interest in the 3D printing industry in general and in the Rehovot-based company in particular, gives Objet another option - acquisition by a multinational electronics and printer company for $500-600 million."
Objet was founded in 1998 by veteran Israeli printing engineers, including Gerson Miller, a founder of Idanit Technologies, which was acquired by Scitex Vision in 1998. Objet CEO David Reis also has decades of experience in the industry, having previously held positions at Nur Macroprinters, Scitex Vision, and Idanit. The company has some 440 employees, of whom about 280 are based in Israel.
Reis will serve as CEO of the merged Objet-Stratasys company. The nine-member board of directors will have four directors from each company and one director who will be nominated by Stratasys and approved by Objet.
“Today marks a significant milestone for Stratasys and an important development for the 3D printing and direct digital manufacturing industry,” said Crump. “We are bringing together two of the most innovative and respected players in the field to create a global leader in a high-growth industry. Together we will have a broader and more comprehensive product and technology portfolio, and the resources, team and financial strength to achieve our goals. Building on the success of both companies, I am confident that we will capitalize on the many opportunities this combination creates for our shareholders, channel partners, customers, employees and other important stakeholders. We look forward to completing this transaction and to building significant long-term value for our shareholders."
“We are excited to be joining forces with Stratasys,” said Reis. “This transaction creates an organization that will provide a broad range of rapid prototyping and direct digital manufacturing applications to our customers, and the ability to bring exciting new products to the market…We look forward to working with Stratasys employees to take our combined company to the next level.”
According to IVC, Objet has raised $28 million from several investors, including Leon Recanati's GlenRock Israel. Scitex Vision sold its 23% in the company for $3 million in 2005, just before Scitex Vision was acquired by Hewlett Packard Co. (NYSE:HPQ), thereby writing off a multimillion dollar investment.
Published by Globes [online], Israel business news - www.globes-online.com - on April 16, 2012
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