Stratasys has made a $1.8 billion all-stock deal to acquire a Massachusetts-based company to make a bigger dent in the highly fragmented 3-D printing market.
The transaction will combine Stratasys' expertise in polymer printing and combine with Desktop Metal, which specializes in production metal, sand, ceramic and dental 3-D. The two companies also target different industries, so they believe the transaction will allow the them to substantially grow revenue, they said in a Friday news release announcing the deal.
"Today is an important day in Stratasys' evolution," said Yoav Zeif, CEO of Stratasys, who will also be chief executive of the combined company. "The combination with Desktop Metal will accelerate our growth trajectory."
Stratasys, based in Eden Prairie and Israel, also said it received another unsolicited stock offer Friday from Israeli company Nano Dimensions to buy 53% to 55% of its stock. It so far has rejected several merger offers from Nano, but in a statement, company leaders said they will bring the latest one to the board of directors.
"We look forward to combining with Stratasys to deliver profitability while driving further innovation for a larger customer base and providing expanded opportunities for our employees," said Ric Fulop, founder and CEO of Desktop Metal, who will become chair of the new company.
The companies projected combined revenue of $1.1 billion in 2025. Stratasys in 2022 had $651.5 million in sales.
The combined company would be valued at $1.8 billion, sources told Bloomberg earlier this week.
The 3-D printing industry is growing significantly, expected to reach more than $100 billion by 2032, Stratasys said.