Stratasys – Desktop Metal Merger Falls Through

Industry giants Stratasys and Desktop Metal have frequently been in the news in the past few years, initially as both companies have undertaken their own mergers and acquisitions. in 2021, DM acquired companies EnvisionTEC and ExOne, specialists in DLP and sand-based 3D printing. The same year, Stratasys acquired the 3D printing materials division of advanced polymers and high-performance plastics company Covestro while also rejecting multiple acquisition bids from Nano Dimension. This consolidation trend brought the two companies into contention as Stratasys launched its own bid to merge with Desktop Metal earlier this year. However, after a long period of uncertainty, this chapter now seems to have come to a close as Stratasys shareholders have rejected the terms of the merger agreement with Desktop Metal which was announced back in May 2023.

As we have previously reported, the talks that first opened in May seemed to indicate that a merger would benefit both companies with an enormous financial boon, as both titans of their own different 3D printing technologies would combine their global networks, earning a speculative $1.1 billion a year by 2025. The merger would also bring some of the biggest names across multiple 3D printing technologies under the same umbrella. However, after closed-door meetings of Stratasys shareholders in August and September, a final vote cast by the shareholders did not meet the necessary limit to approve the terms of the merger and has henceforth been terminated. The announcement has opened up a great deal of speculation as to what lies in the future for both companies.

The Stratasys J850 (left) and the Desktop Metal X160 Pro (right). A potential merger would have brought the companies’ different technologies together under the same umbrella.

Stratasys Alters Course

The initial statement from the Stratasys board of directors chairman, Dov Ofer, underlined the change in direction stating, “We have decided to undertake a comprehensive and thorough review of all available strategic alternatives. We are entering this review as the leader in the additive manufacturing space and will continue to execute our strategy, powered by innovation and profitable growth, which has led Stratasys to outpace the competition. Importantly, we remain focused on our mission to deliver value to customers and are committed to taking the appropriate actions to maximize value for all Stratasys shareholders.”