Stratasys and Desktop Metal reached a $1.8 Billion Deal
Stratasys Ltd. agreed to acquire Desktop Metal Inc. in an all-stock deal that will create a leading 3D printer company valued at about $1.8 billion.
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Stratasys to Combine With @DesktopMetal in a $1.8 Billion Deal!
Companies seek greater heft in the fragmented 3D printing industry, Bloomberg reports#3dprint #tech #Industry pic.twitter.com/MDTwcHCptq— The_Journalbiz (@the_journalbiz) May 25, 2023
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Desktop Metal shareholders will receive 0.123 Stratasys shares for every class A share they already own, according to a statement Thursday that confirmed an earlier Bloomberg News report.
That’s worth about $1.88 per share based on Tuesday’s prices or about a 2% premium to Desktop Metal’s close that day.
The combined company will have greater heft in the fragmented 3D printing industry and is targeting $1.1 billion in 2025 revenue.
More than half its sales will come from the fast-growing segment of end-use parts manufacturing and mass production, according to the statement. Existing Stratasys shareholders will own approximately 59% of the merged entity.
3D printers can make objects from a variety of materials such as plastics, metal and cement, using a digital design as a guide. The combination of Stratasys and Desktop Metal will have more than 27,000 industrial customers across a range of sectors including aerospace, automotive, consumer products, and health care.
