3D printer maker Stratasys to merge with Desktop Metal in a $1.8 billion deal
Industrial 3D printer manufacturer Stratasys Ltd announced on Thursday that it plans to merge with fellow industry player Desktop Metal Inc in an all-stock transaction valued at around $1.8 billion.
The merger news follows Stratasys’ rejection of several acquisition proposals from its largest shareholder, Nano Dimension Ltd, which holds a 14.2% stake in the company. In response, Nano Dimension launched a hostile all-cash offer of $18.00 per share on Thursday, aiming to increase its stake in Stratasys to a range of 53% to 55%.
Stratasys said it has responded to the unsolicited special tender offer by stating that it will undertake a thorough review and evaluation of the proposal. The company intends to inform its shareholders of the board’s position within a period of 10 business days.
As a result of the merger, Stratasys shareholders are projected to hold approximately 59% ownership in the newly formed company.
“We are excited to complement our portfolio of production metal, sand, ceramic and dental 3D printing solutions with Stratasys’ polymer offerings,” Desktop Metal chief Ric Fulop said.
Founded in 1989, Eden Prairie, Minnesota-based Stratasys is a big player in the field of additive manufacturing, commonly known as 3D printing. The company specializes in producing industrial-grade 3D printers and materials for a wide range of industries, including aerospace, automotive, healthcare, consumer products, and more.
Stratasys also offers a diverse portfolio of 3D printers that cater to various manufacturing needs. Their printers utilize different technologies, such as fused deposition modeling (FDM) and polyjet, enabling the creation of functional prototypes, end-use parts, and production-grade components with different materials and properties.
The transaction, subject to approval, is anticipated to be finalized in the fourth quarter of this year. With an equity value of $604.3 million, the combined entity is expected to generate approximately $1.1 billion in revenue by 2025.