In a 3D printing merger, Stratasys Ltd. is combining with Desktop Metal Inc. in an all-stock deal valued at $1.8 billion.
Officials with Stratasys in Rehobot, Israel, and with Desktop Metal in Burlington, Mass., said that the deal "unites the polymer strengths of Stratasys with the complementary industrial mass production leadership of Desktop Metal's brands."
They added that the merger "creates an additive manufacturing company that is expected to be well-positioned to serve the evolving needs of customers in manufacturing." The combined firm is expected to generate sales of $1.1 billion by 2025.
The deal has been approved by both firms' boards, but still requires shareholder approval. Under terms of the merger, Desktop Metal stockholders will receive 0.123 ordinary shares of Stratasys for each share of Desktop Metal Class A common stock. When the transaction closes in the fourth quarter, existing Stratasys shareholders will own approximately 59 percent of the combined firm, with legacy Desktop Metal stockholders owning the remaining 41 percent.
In a news release, Stratasys CEO Yoav Zeif said that 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."
He added that the two firms have complementary product offerings, including aerospace, automotive, consumer products, health care and dental. Stratasys and Desktop Metal also have "one of the largest and most experienced R&D teams, industry-leading go-to-market infrastructure and a robust balance sheet."