3D printing developer Stratasys Inc. (Nasdaq: SSYS) has acquired New York desktop 3D printing company MakerBot. The two companies last night announced the signing of an agreement in which MakerBot will merge with Stratasys in an all share deal worth $403 million, and a further $201 million in performance payments through December 2014.
MakerBot, founded in 2009, has develop the desktop 3D printing market and has built the largest installed base of 3D printers in the category making them highly accessible.
Stratasys, which is headquartered in Rehovot, makes higher-end 3D printers. The company was formed in 2012 from Israeli company Objet's merger with its US rival Stratsys with the merged company adopting the latter's name. In after-market trading on Nasdaq last night the company's share price rose 2.8% to $87, giving a market cap of $3.27 billion.
Stratasys said that the merger of these two industry leaders is expected to drive faster adoption of 3D printing for multiple applications and industries, as desktop 3D printers are becoming a mainstream tool in many markets. Upon completion of the transaction, MakerBot will operate as a separate subsidiary of Stratasys, maintaining its own identity, products and market strategy.
The merger is expected to be completed during the third quarter of 2013, and is subject to regulatory approvals.
Stratasys CEO David Reis said, “MakerBot’s 3D printers are rapidly being adopted by CAD-trained designers and engineers. Bre Pettis and his team at MakerBot have built the strongest brand in the desktop 3D printer category by delivering an exceptional user experience. MakerBot has impressive products, and we believe that the company’s strategy of making 3D printing accessible and affordable will continue to drive adoption."
Published by Globes [online], Israel business news - www.globes-online.com - on June 20, 2013
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