Merger Unites 3D Printing/Digital Manufacturing Suppliers

April 18, 2012
Stratasys and Objet to combine; new company to offer multiple technologies, complementary products

Minneapolis-based Stratasys Inc. is consolidating with a division of another additive manufacturing technology supplier, Objet Ltd., to form a new, $1.4-billion concern that the merger partners indicate will be a new leader in the 3D printing and direct digital manufacturing sector. Additive manufacturing is a label for a collection of processes that produce three-dimensional parts directly from CAD files. Processes like selective laser sintering, direct-metal laser sintering, stereo-lithography, and electron-beam melting, among others, are gaining wider acceptance for the speed and precision they offer for critical component parts production.

"We are bringing together two of the most innovative and respected players in the field to create a global leader in a high-growth industry,” stated Stratasys chairman and CEO Scott Crump. “Together we will have a broader and more comprehensive product and technology portfolio, and the resources, team and financial strength to achieve our goals.”

Stratasys develops and manufactures 3D printers and production systems for prototyping and direct digital manufacturing.

Objet Ltd., Rehovot, Israel, produces 3D printers for rapid prototyping. The new company will have dual headquarters, in Minnesota and Israel, but it will be known as Stratasys. Crump will be the chairman of the combined company. David Reis, CEO of Objet, will be chief executive officer of the combined company.

According to Reis, "This transaction creates an organization that will provide a broad range of rapid prototyping and direct digital manufacturing applications to our customers, and the ability to bring exciting new products to the market. With an impressive technology portfolio, great talent, and an extensive sales and marketing channel, we will be well positioned to achieve efficient growth, expand our distribution reach and create value for all of our stakeholders."

The two companies stated that their new company – also to be known as Stratasys – will have greater geographic reach to promote customer awareness of their 3D printing and rapid prototyping techniques. And, they predicted that existing customers will gain from a broader selection of products with complementary functions.

After the all-stock transaction, Stratasys shareholders are expected to hold 55% of the equity in the new company, and Objet investors will control 45%.

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