Israeli 3D printing firm Stratasys will merge with Desktop Metal, a US company, in an all-stock deal creating a combined 3D printer company valued at approximately $1.8 billion.
The combined company is expected to generate $1.1 billion in revenue in 2025, Stratasys said in a Thursday statement.
The deal is expected to be finalized by the last quarter of 2023.
The merger between Stratasys and Desktop Metal aims to create a leading company in the fragmented 3D printing industry, which is expected to expand to more than $100 billion by 2032.
Stratasys stockholders will own approximately 59% of the merged company and Desktop Metal shareholders will own 41% of the combined entity.
Stratasys, with offices in Rehovot and Minnesota, is a maker of industrial 3D printers and operates in such fields as consumer products, aerospace and the automotive industry. The company trades on the Nasdaq exchange. Desktop Metal designs and markets 3D printing systems.
“Today is an important day in Stratasys’s evolution,” Dr. Yoav Zeif, CEO of Stratasys, said in a statement. “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.”
Co-founder, chairman and CEO of Desktop Metal, Ric Fulop, said, “We believe this is a landmark moment for the additive manufacturing industry.”
“The combination of these two great companies marks a turning point in driving the next phase of additive manufacturing for mass production. We are excited to complement our portfolio of production metal, sand, ceramic and dental 3D printing solutions with Stratasys’ polymer offerings,” Fulop added.
Zeif will lead the combined company as CEO, together with Fulop as chairman of the board.