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Stratasys has entered into a definitive agreement to combine with Desktop Metal in an all-stock transaction valued at approximately $1.8 billion.
This combination creates an additive manufacturing company that is expected to be well-positioned to serve the evolving needs of customers in manufacturing.
Who is Stratasys?
Stratasys, headquartered in Rehovot, Israel, is a leader in polymer 3D printing solutions for industries such as aerospace, automotive, consumer products, healthcare, fashion and education.
Who is Desktop Metal?
Desktop Metal, headquartered in Boston, Massachusetts, is a leader in industrial production with a strong portfolio of production metal, sand, ceramic and dental 3D printing solutions that is complementary to Stratasys’ polymer strengths.
What are the financial and strategic benefits of the transaction?
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.
The transaction establishes a uniquely scaled additive manufacturing company that is expected to be one of the largest companies in the industry, targeting $1.1 billion in 2025 revenue.
The combination is expected to generate approximately $50 million in annual run-rate cost savings by 2025, with an additional $50 million in annual run-rate revenue synergies.
In addition, the combined company will have a broad product portfolio and attractive positions across multiple additive manufacturing technologies and solutions, with more than 50% of pro forma combined company revenue is expected to be derived from end-use-parts manufacturing, one of the fastest growing segments in additive manufacturing.
The transaction brings together complementary IP portfolios with more than 3,400 patents and pending patent applications and one of the largest R&D and engineering teams in the industry.
What are the terms of the transaction?
Stratasys and Desktop Metal have entered into a definitive agreement whereby the companies will combine in an all-stock transaction valued at approximately $1.8 billion.
Under the terms of the agreement, Desktop Metal stockholders will receive 0.123 ordinary shares of Stratasys for each share of Desktop Metal Class A common stock, which 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 May 23, 2023.
Following the closing of the transaction, Stratasys shareholders will own approximately 59% of the combined company, and Desktop Metal shareholders will own approximately 41% of the combined company, on a fully diluted basis.
Who will lead the combined company?
Following the close of the transaction, Dr. Yoav Zeif, CEO of Stratasys, will lead the combined company as CEO together with Mr. Ric Fulop, current CEO of Desktop Metal, as Chairman of the Board.
What happens between now and close?
Until the transaction closes, which we expect to occur in the fourth quarter of 2023, Stratasys and Desktop Metal will continue to operate as separate companies.
When will the transaction close? What approvals do you need to close the transaction?
We expect the transaction to close in the fourth quarter of 2023, subject to customary closing conditions, including the approval of Stratasys' shareholders and Desktop Metal's stockholders and the receipts of certain governmental and regulatory approvals.
