Stratasys (NASDAQ:SSYS) and Desktop Metal (NYSE:DM) have today officially announced they will combine in a $1.8 billion all-stock transaction.
Under the terms of the agreement, Desktop Metal shareholders will receive 0.123 ordinary shares of Stratasys for each share of Desktop Metal, implying a value of approximately $1.88 per share. Upon close, Stratasys shareholders will own 59% of the new company, and Desktop Metal shareholders will own the remaining 41%.
The deal, first rumored by Bloomberg on Wednesday, will unite "the polymer strengths of Stratasys with the complementary industrial mass production leadership of Desktop Metal’s brands, creating an additive manufacturing company that is expected to be well-positioned to serve the evolving needs of customers in manufacturing."
The combined company is guided to generate $1.1B in revenues in 2025, "with significant upside potential in a total addressable market of more than $100 billion by 2032."
"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" - commented Stratasys CEO Yoav Zeif, with his Desktop Metal counterpart Ric Fulop adding: "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."
The merger is currently projected to close in Q4 2023, and remains subject to customary closing conditions, including approval by shareholders of both companies.
Shares of SSYS are trading around 3% higher following the announcement. DM is up over 8%.