Desktop Metal and Stratasys to Combine in Move to “Reshape the AM Industry”

If you have been following along with us, you will know that consolidation has been a hot topic for the 3D printing market for some time now. After years of expansion and more and more players coming to the market, in the past year or so the trend has seemed to focus more on mergers and acquisitions. Now, there is yet more news. Desktop Metal and Stratasys, both leaders in different 3D printing technologies, have announced that they will be combining by the end of this year.

As mentioned, mergers and acquisitions have become more common over the past two years. Indeed, Desktop Metal itself was a driving force behind many of them. In 2021, the company quickly acquired both EnvisionTEC (now named ETEC) and ExOne, a leader in metal and sand binder jetting. Meanwhile, Stratasys has been making moves of its own, not just rejecting Nano Dimension’s repeated bids for the company, but also acquiring the 3D printing materials section of Covestro.

One of Stratasys’ solution (photo credits: Stratasys)

Still, this latest announcement may come as a surprise to many in the industry. Both Desktop Metal and Stratasys are giants in additive manufacturing. Although the community at large was concerned when DM lay off approximately 12% off its workforce in a cost optimization initiative. Now the two will be combining in an all-stock transaction valued at $1.8B with the closing expected to occur in the fourth quarter of 2023. Under the terms of the agreement as well, Desktop Metal stockholders will receive 0.123 ordinary shares of Stratasys for each share of Desktop Metal Class A common stock at a value of approximately $1.88 per share. Upon completion, Stratasys shareholders are expected to own approximately 59% of the combined company and legacy Desktop Metal stockholders will own approximately 41%, opening what may be a new era in leaders in additive manufacturing.