Stratasys, an Israeli 3D-printing company, and Desktop Metal (a US company) will merge in a deal that is all stock, creating a combined 3D-printer company worth approximately $1.8 Billion.
In a statement released on Thursday, Stratasys stated that the combined company will generate revenue of $1.1 billion by 2025.
The finalization of the deal is expected by the fourth quarter of 2023.
The merger of Stratasys with Desktop Metal aims at creating a leading company within the fragmented 3D-printing industry. This is expected to grow to over $100 billion in 2032.
Stratasys shareholders will hold approximately 59% and Desktop Metal stockholders 41% respectively of the combined company.
Stratasys is a manufacturer of industrial 3D Printers with offices in Rehovot, Minnesota and other areas such as aerospace, automotive and consumer products. The company is listed on the Nasdaq. Desktop Metal is a company that designs and sells 3D printing machines.
“Today is an important day in Stratasys’s evolution,” Dr. Yoav Zeif, CEO of Stratasys, said in a statement. “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.”
Co-founder, chairman and CEO of Desktop Metal, Ric Fulop, said, “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,” Fulop added.
Zeif, in his role as CEO of the combined company, will be joined by Fulop as Chairman of the Board.