Stratasys, Desktop Metal to merge into next-gen AM company

Additive manufacturing (AM) companies Stratasys Ltd. (Rehovot, Israel) and Desktop Metal Inc. (Burlington, Mass., U.S.) have entered into a definitive agreement whereby the companies will combine in an all-stock transaction valued at approximately $1.8 billion.

The transaction unites the polymer strengths of Stratasys with the complementary industrial mass production leadership of Desktop Metal’s brands, creating an AM company that is expected to be well-positioned to serve the evolving needs of customers in manufacturing.

Stratasys and Desktop Metal are expected to generate $1.1 billion in 2025 revenue, with significant upside potential in a total addressable market of more than $100 billion by 2032.

“Today is an important day in Stratasys’ evolution,” Dr. Yoav Zeif, CEO of Stratasysm says. “The combination with Desktop Metal will accelerate our growth trajectory by uniting two leaders to create a premier global provider of industrial additive manufacturing solutions. With attractive positions across complementary product offerings, including aerospace, automotive, consumer products, healthcare and dental, as well as one of the largest and most experienced R&D teams, industry-leading go-to-market infrastructure and a robust balance sheet, the combined company will be committed to delivering ongoing innovation while providing outstanding service to customers. We look forward to building on the complementary strengths of the combined business and leveraging the strong brand equity across the portfolio to deliver enhanced value to shareholders, customers and employees.”

Strategic and financial benefits of the combined company include greater opportunities for growth; bringing together complementary portfolios, expected to offer customers end-to-end solutions from designing, prototyping and tooling to mass production and aftermarket operations across the entire manufacturing lifecycle; uniting robust innovation and technology expertise, combining IP portfolios with more than 3,400 patents and pending patent applications and more than $500 million in R&D over the last four fiscal years; diversifying customer bases across industries and applications; creating opportunities for meaningful synergies; and increased financials strength. 

“We believe this is a landmark moment for the additive manufacturing industry,” Ric Fulop, cofounder, chairman and CEO of Desktop Metal, adds. “The combination of these two companies marks a turning point in driving the next phase of additive manufacturing for mass production. Together, we will strive to build an even more resilient offering with a diversified customer base across industries and applications in order to drive long-term sustainable growth.”

Learn more about Stratasys and its contributions to the composites industry here.