Stratasys Merges with Israeli Firm to Form $1.4B Co.
Eden Prairie-based 3-D printer manufacturer Stratasys, Inc., will soon merge with Objet, Ltd., a Rehovot, Israel-based company that also makes 3-D printers, the companies said Monday.
The boards of both companies have unanimously approved the merger. The equity value of the combined company will total approximately $1.4 billion.
Under the terms of the agreement, Stratasys and Objet shareholders will receive one share of the combined company for each share that they own of Stratasys' and/or Objet's stock. When the deal closes, Stratasys shareholders will own about 55 percent and Objet shareholders will own about 45 percent of the combined company. The deal is expected to close sometime in the third quarter of this year.
The combined company-which will operate as Stratasys, Ltd.,-will be registered in Israel and will maintain headquarters in both Eden Prairie and Rehovot. It will trade on the NASDAQ Global Select Market under Stratasys' current ticker, SSYS. Scott Crump-Stratasys' cofounder, CEO, and chairman-will become chairman of the combined company, while Objet CEO David Reis will take over as CEO of the post-merger company.
3-D printers are manufacturing machines that can produce parts or prototypes from digital designs. Stratasys sells its printers under the UPrint, Fortus Production 3D Printers, and Dimension 3D Printers brands.
Objet, meanwhile, specializes in 3-D printers designed to produce prototypes rapidly. Aside from its headquarters in Israel, it has offices in North America, Europe, Japan, Hong Kong, and India.
Stratasys and Objet said that the merger will grow their customer base through increased geographic reach and make more people aware of 3-D printing. The combined company will also have more research and development capabilities than what either Stratasys or Objet has alone, the two companies said.
“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,” Crump said in a statement. “Together, we will have a broader and more comprehensive product and technology portfolio, and the resources, team, and financial strength to achieve our goals. Building on the success of both companies, I am confident that we will capitalize on the many opportunities this combination creates for our shareholders, channel partners, customers, employees, and other important stakeholders.”
Stratasys is among Minnesota's 60-largest public companies based on revenue, which totaled $155.9 million in 2011.