Stratasys merges with Desktop Metal at $1.8b valuation

Israeli 3D printing company Stratasys (Nasdaq: SSYS) and the American 3D printing company Desktop Metal, Inc. (NYSE: DM) announced today that they have entered into a definitive agreement to merge in an all-stock transaction valued at $1.8 billion. The merger aims to combine the polymer strength of Stratasys with Desktop Metal’s complementary mass industrial production leadership.

Stratasys and Desktop Metal say they are expected to generate $1.1 billion in revenue in 2025, with significant upside potential in a market of more than $100 billion by 2032.

Under the terms of the agreement, which was unanimously approved by the boards of directors of both companies, Desktop Metal shareholders will receive 0.123 common shares of Stratasys for each share of Desktop Metal Class A common stock. That’s approximately $1.88 per share of Desktop Metal Class A common stock based on Stratasys’ closing price of $15.26 common stock Tuesday. When the merger is complete, Stratasys shareholders will own 59% of the combined company, while legacy Desktop Metal shareholders will own 41%. The merger is scheduled to be completed in the fourth quarter of 2023.

“Today is an important day in the evolution of Stratasys,” said Dr. Yoav Ziv, Stratasys CEO. “The merger with Desktop Metal will accelerate our growth trajectory by uniting two leaders to create a leading global provider of industrial additive manufacturing solutions with attractive positions across complementary offerings.” products, including aerospace, automotive, consumer products, healthcare, and dental, plus one of the largest and most experienced R&D teams, industry-leading infrastructure, and a strong balance sheet, the combined company will be committed to delivering continuous innovation while delivering outstanding service We look forward to building on the complementary strengths of the combined business and leveraging strong equity across the portfolio to deliver enhanced value to shareholders, customers and employees.”

Added Rick Fulop, Chairman of Desktop Metal, Inc. “We believe this is a defining moment in the additive industry. The combination of these two great companies marks a turning point in driving the next phase of mass production additive manufacturing. We are excited to complement our suite of 3D printing solutions.” To produce Metals, Sand, Ceramics and Dental with Stratasys Polymer offerings.Together, we will strive to build a more resilient offering with a diverse customer base across industries and applications in order to drive long-term sustainable growth.We look forward to merging with Stratasys to drive profitability while driving further innovation for a larger customer base and provide expanded opportunities for our employees.”

Rehovot-based Stratasys has been the subject of a hostile takeover by a cash-rich Israeli 3D printing company. nano dimensions (NASDAQ: NNDM) in recent months. In response, Stratasys adopted a limited-term equity plan (a poison pill) to block the takeover, which was valued at about $1.2 billion.

Published by Globes, Israel business news – en.globes.co.il – on May 25, 2023.

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