Stratasys to Acquire Fellow 3D Printing Company in $1.8B Deal
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Stratasys to Acquire Fellow 3D Printing Company in $1.8B Deal

Pending approval by shareholders and regulators, the deal is slated to close in the fourth quarter of this year.
Stratasys on Facebook

After fending off multiple takeover offers from a rival firm, 3D printing company Stratasys Ltd. is setting its sights on a different partner.

On Thursday, Stratasys said it’s inked a $1.8 billion deal to acquire fellow 3D printing firm Desktop Metal Inc. In a press release, the companies billed the deal as a “merger,” though terms of the agreement seem to indicate an acquisition by Stratasys. Per a May 25 SEC filing, Massachusetts-based Desktop Metal will survive the merger “as a direct wholly owned subsidiary of Stratasys.”

According to the terms of the deal, Stratasys’ new board would be composed of 11 members, with five chosen by Stratasys and five chosen by Desktop Metal. Stratasys CEO Yoav Zeif would be the 11th member. In addition, Desktop Metal CEO Ric Fulop would serve as the board’s chairman.

In the news release, Fulop said the deal “marks a turning point in driving the next phase of additive manufacturing for mass production.”

The boards of each company have already approved the deal, though it’s still subject to shareholder approval. Pending regulatory approval, the transaction is slated to close in the fourth quarter of this year.

Almost a year ago, Stratasys, which has dual headquarters in Eden Prairie and Israel, adopted a “poison pill” plan after rival firm Nano Dimension acquired 12% of its shares. At the time, Stratasys said the plan was intended to “protect the long-term interests of Stratasys and all Stratasys shareholders.”

Nano apparently hasn’t given up its aim to acquire Stratasys, though. Also on Thursday, Nano “launched a hostile $18.00 per share all-cash offer to boost its stake in Stratasys to between 53% and 55%,” Reuters reported.

Stratasys, in turn, said it would “carefully review and evaluate” Nano’s latest offer, according to Reuters.