Digital Manufacturing Stratasys, Objet to merge, form 3D printer titan
Stratasys and Objet have announced a merger expected to give Stratasys shareholders 55% ownership of a company with a combined equity value of approximately $1.4 billion (€1 billion).
In a joint statement, the partners said the new company will retain the US firm’s name and operate under Stratasys Ltd. with dual headquarters in Eden Prairie, Minnesota, and Rehovot, Israel, Objet’s current administrative centre. The deal will be an all-stock transaction, the partners said.
“Today marks a significant milestone for Stratasys and an important development for the 3D printing and direct digital manufacturing industry,” said Scott Crump, chief executive officer and chairman of Stratasys. “We are bringing together two of the most innovative and respected players in the field to create a global leader in a high-growth industry.”
Objet CEO David Reis said, “We are excited to be joining forces with Stratasys. This transaction creates an organisation that will provide a broad range of rapid prototyping and direct digital manufacturing applications to our customers, and the ability to bring exciting new products to the market.”
Crump, also the co-founder of Stratasys, will become full-time chairman of the combined company, the partners said. Reis has been tabbed as the CEO.
The company will continue to trade on NASDAQ under the ticker SSYS. Upon completion of the transaction, the combined company is expected to form an executive committee comprising four members of the board of directors, whose duties will include overseeing the integration of Stratasys and Objet and implementing the combined company’s business strategy. Elchanan Jaglom, current chairman of Objet, has been announced as the chairman of the executive committee of the combined company.
Stratasys also announced preliminary financial results for the first quarter ended March 31. It expects to report revenue of approximately $45.0 million (€34.3 million), a 31% increase compared with $34.3 million reported during the same period last year.