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Stratasys, Desktop Metal to Combine in USD 1.8bn Stock Transaction
Friday 26 May 2023

Israel-based additive manufacturing company Stratasys Ltd. (NASDAQ: SSYS) has agreed to combine with Massachusetts-based 3D technology provider Desktop Metal, Inc. (NYSE: DM) in an all-stock transaction valued at approximately USD1.8 bn, the company said.

Under the terms of the agreement, Desktop Metal stockholders will receive 0.123 ordinary shares of Stratasys for each share of Desktop Metal class A common stock.

Following the closing of the transaction, existing Stratasys shareholders will own approximately 59% of the combined company, and legacy Desktop Metal stockholders will own approximately 41% of the combined company, in each case, on a fully diluted basis.

The transaction unites the polymer strengths of Stratasys with the complementary industrial mass production leadership of Desktop Metal's brands, creating an additive manufacturing 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 USD 1.1bn in 2025 revenue, with significant upside potential in a total addressable market of more than USD 100bn by 2032.

J.P. Morgan Securities LLC is acting as exclusive financial advisor to Stratasys and Meitar Law Offices and Wachtell, Lipton, Rosen & Katz are serving as legal counsel. Stifel is acting as exclusive financial advisor to Desktop Metal and Latham & Watkins LLP and Shibolet & Co. are serving as legal counsel.
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Date Published: 26/05/2023

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