3D-Printer Market Leader Stratasys Urges Shareholders to Approve Merger
3D-Printer Leader Stratasys, which is headquartered in Minneapolis and Rehovot, Israel, is urging its shareholders to approve a merger with 3D-printer company Desktop Metal, a move it says would create a next-generation additive manufacturing company with enhanced growth and profitability.
Stratasys, a leader in polymer 3D-printing solutions, also scheduled an extraordinary meeting of shareholders for September 23, 2023, at which time its shareholders will vote on the proposal.
Desktop Metal is also asking its shareholders to approve the merger. Under the merger, Desktop shareholders will receive 0.123 ordinary shares of Stratasys for each share of Desktop Metal Class A common stock. If approved, the closing of the transaction is expected to occur in the fourth quarter of 2023
The Stratasys Board of Directors is unanimously recommending that Stratasys shareholders vote for the merger. It says the merger would accelerate Stratasys’ mission to lead additive manufacturing (AM) into mass production by having a metal manufacturing solution alongside its polymer offering – ultimately establishing an “AM powerhouse marked by innovation, operating efficiency and unmatched execution.” It also says the merger would create new opportunities in AM for customers, providing broad and complementary products and services and unique technologies.
Ultimately, it says, the Stratasys and Desktop Metal merger “will create the first industrial additive manufacturing company covering the full manufacturing lifecycle from design to mass production in both polymers and metal” with annual revenues of $1.6 billion and $300 million in earnings before taxes by 2026.
The merger is expected to create little overlap for the companies, with an expected $50 million-plus in cost synergies, and an additional $50 million in revenue synergies expected to be realized by 2025.
The merger would also result in a combined research and development team of over 800 scientists and engineers, and over 3,400 active patents and pending patent applications.
Stratasys also says the merger with Desktop Metal will double its addressable market for manufacturing in 2027.
The two companies expect that if the merger is approved, they will close in the fourth quarter of this year.
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