3D-printed sand cores.

Stratasys Buys Desktop Metal in All-Stock Deal

May 29, 2023
The estimated $1.8-billlion combination creates a new organization in the additive manufacturing sector, with capabilities for producing 3D-printed parts in metal, sand, polymers, and ceramics, and a range of printing technologies, software, and materials

Additive manufacturing groups Stratasys Ltd. and Desktop Metal Inc. are combining in an unexpected, all-stock deal that they estimate at approximately $1.8 billion. Directors of both companies have endorsed the transaction, in which DM shareholders will receive Stratasys stock equivalent to 41% of the combined company.

Stratasys is one of the longest-established firms in the additive manufacturing sector, with particular strength in printing of polymer materials, and product offerings ranging from connected 3D printers to design and program software. Strategically, the new combination invests Stratasys with AM technologies and capabilities in consumer markets that currently it does not serve – including sand and metal printing.

Desktop Metal acquired The ExOne Co. in 2021, bringing ExOne’s array of materials and systems for 3D printing metals, ceramics, composites, and sand into its portfolio of Desktop Metals printing systems.

Dr. Yoav Zeif, CEO of Stratasys, emphasized the complimentary assets of the two firms in his assessment of the takeover. “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. With attractive positions across complementary product offerings, including aerospace, automotive, consumer products, healthcare and dental, as well as one of the largest and most experienced R&D teams, industry-leading go-to-market infrastructure and a robust balance sheet, the combined company will be committed to delivering ongoing innovation while providing outstanding service to customers.”

Zeif will remain the CEO of the new Stratasys, while Desktop Metal chairman and CEO Ric Fulop will become the chairman of the combined entity.