Stratasys Merges with Objet to Create 3D Printing Powerhouse in $1.4 Billion Deal
Consolidation is in the air! Last week we saw 3D Systems acquire My Robot Nation. This week, Stratasys (NASDAQ:SSYS) announced a plan to merge with Objet Ltd. in an all-stock transaction valuing the newly combined company at $1.4 billion, according to a press release.
The combined company, which will retain the Stratasys name and operate under the name Stratasys Ltd., will have dual headquarters in Eden Prairie, Minnesota and Rehovot, Israel, the locations of Stratasys’ and Objet’s current headquarters, respectively, and will be registered in Israel. The company will continue to trade on NASDAQ under the ticker SSYS. Scott Crump, co-founder, current chief executive officer and chairman of Stratasys, will become full-time chairman of the combined company. Upon completion of the transaction, the combined company will also form an executive committee comprised of four members of the board of directors whose duties will include overseeing the integration of Stratasys and Objet and implementing the combined company’s business strategy. Elchanan Jaglom, current chairman of Objet, will serve as chairman of the executive committee of the combined company.
Stratasys beat analysts expectations for Q1 2012, pulling in revenue of $45 million compared to expectations of $42 million.
Stratasys classifies itself as “a leading manufacturer of 3D printers and production systems for prototyping and manufacturing applications”, and privately held Objet Ltd. as “a leading manufacturer of 3D printers for rapid prototyping.” Once merged, this entity will have an undeniable leadership position in the emerging 3D printing industry.
More details of the merger are available in an investor presentation prepared by Stratasys.