Israeli 3D printing company Stratasys (Nasdaq: SSYS) and US 3D printing company Desktop Metal, Inc. (NYSE: DM) today announced that they have entered into a definitive agreement to combine in an all-stock deal valued at $1.8 billion. The merger is aimed at combining the polymer strengths of Stratasys with the complementary industrial mass production leadership of Desktop Metal.
Stratasys and Desktop Metal say they are expected to generate $1.1 billion in 2025 revenue, with significant upside potential in a market of more than $100 billion by 2032.
Under the terms of the agreement, which has been unanimously approved by the boards of both companies, Desktop Metal stockholders will receive 0.123 ordinary shares of Stratasys for each share of Desktop Metal Class A common stock. This represents a value of approximately $1.88 per share of Desktop Metal Class A common stock based on the closing price of a Stratasys ordinary share of $15.26 on Tuesday. When the merger is completed Stratasys shareholders will hold 59% of the combined company, and legacy Desktop Metal stockholders will hold 41%. The merger is scheduled for completion in the fourth quarter of 2023.
Stratasys CEO Dr. Yoav Zeif said, "Today is an important day in Stratasys’ evolution. The combination with Desktop Metal will accelerate our growth trajectory by uniting two leaders to create a premier global provider of industrial additive manufacturing solutions. With attractive positions across complementary product offerings, including aerospace, automotive, consumer products, healthcare and dental, as well as one of the largest and most experienced R&D teams, industry-leading go-to-market infrastructure and a robust balance sheet, the combined company will be committed to delivering ongoing innovation while providing outstanding service to customers. 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."
Desktop Metal chairman Ric Fulop added, "We believe this is a landmark moment for the additive manufacturing industry. The combination of these two great companies marks a turning point in driving the next phase of additive manufacturing for mass production. We are excited to complement our portfolio of production metal, sand, ceramic and dental 3D printing solutions with Stratasys’ polymer offerings. 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. We look forward to combining with Stratasys to deliver profitability while driving further innovation for a larger customer base and providing expanded opportunities for our employees."
Rehovot-based Stratasys has been the subject of a hostile takeover by cash-rich Israeli 3D printing company Nano Dimension (Nasdaq: NNDM) in recent months. In response, Stratasys adopted a limited duration shareholders rights plan (poison pill) approach to prevent the takeover, which was at a company valuation of about $1.2 billion.
Published by Globes, Israel business news - en.globes.co.il - on May 25, 2023.
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