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“We are pleased with the progress we are making as we move forward with the combination of our two companies, creating a leader within the high-growth 3D printing and direct digital manufacturing industry,” said Scott Crump, chief executive officer and chairman of Stratasys. “We are confident that this transaction will build significant long-term value for all stakeholders of both companies, including stockholders, channel partners, customers, and employees.”
The proxy statement provides certain pro forma financial results that outline the combined performance for Stratasys and Objet during prior periods. Included in this press release are certain financial tables that outline the pro forma results on a GAAP and non-GAAP basis for the 3-month period ended March 31, 2012, and the 12-month period ended December 31, 2011. Stratasys standalone results for the same periods, which were previously released, are also provided in the financial tables of this press release for comparative purposes.
The Stratasys and Objet combined pro forma revenue and earnings per share for the 3-month period ended March 31, 2012 on a non-GAAP basis are $83.0 million and $0.32 per share, respectively, compared to Stratasys standalone reported non-GAAP revenue and earnings of $45.0 million and $0.28 per share.
The combined pro forma revenue and earnings per share for the 12-month period ended December 31, 2011 on a non-GAAP basis are $277.0 million and $0.94 per share, respectively, compared to Stratasys standalone reported non-GAAP revenue and earnings of $155.9 million and $1.04 per share.
The non-GAAP financial measures, which exclude certain charges, expenses and income, are outlined in more detail in the tables provided at the end of this press release.
Today we are publishing the investor presentation prepared to describe the merger. Here is an analysis with some key takeaways:
- Areas of synergy include a portfolio of complementary products and the strength of a combined leadership team
- Deal highlights for new merged entity:
- Stock-for-stock merger with 55% owned by Stratasys; 45% by Objet
- Will combine under the public ticker SSYS on NASDAQ
- Blended management team: Stratasys CEO becomes Chairman and Objet CEO becomes combined CEO
- Dual HQ in Minnesota and Israel
- Transaction expected to close in Q3
- Objet has 2800 customers of 3D printers; 2011 revenue of $121M and net income of $14M; based in Israel with 430 employees
- Stratasys had 2011 revenue of $156M and net income of $22M
- Combined entity has $125.7M in cash and short term equivalents
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.