Additive manufacturing: Stratasys to combine with Desktop Metal

TCL Hofmann

Friday, 09 June, 2023

Additive manufacturing: Stratasys to combine with Desktop Metal

3D printer manufacturers Stratasys and Desktop Metal have announced an agreement whereby the companies will combine in a transaction valued at approximately US$1.8 billion. The transaction unites the polymer AM capabilities of Stratasys with the complementary industrial mass production focus of Desktop Metal’s brands, creating an additive manufacturing company that the companies say is expected to be well positioned to serve the evolving needs of customers in manufacturing.

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

“Today is an important day in Stratasys’ evolution,” said Dr Yoav Zeif, CEO of Stratasys. “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, health care 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 believe this is a landmark moment for the additive manufacturing industry,” said Ric Fulop, Co-founder, Chairman and CEO of Desktop Metal. “The combination of these two great companies marks a turning point in driving the next phase of additive manufacturing for mass production. We are excited to complement our portfolio of production metal, sand, ceramic and dental 3D printing solutions with Stratasys’s polymer offerings. 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.”

Bringing together Stratasys’s and Desktop Metal’s additive manufacturing platform offerings, the combined company will have a broader product portfolio and attractive positions across multiple additive manufacturing technologies and solutions. More than 50% of pro forma combined company revenue is expected to be derived from end-use-parts manufacturing and mass production, one of the fastest growing segments in additive manufacturing. The combined company is expected to offer customers end-to-end solutions from designing, prototyping and tooling to mass production and aftermarket operations across the entire manufacturing lifecycle.

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