Stratasys Ltd. SSYS, -2.49% and Desktop Metal Inc. DM, -4.89% said Thursday they have agreed to combine in an all-stock deal valued at about $1.8 billion that will create a new company in the 3-D printing space. Under the terms of the board-approved deal, Desktop Metal shareholders will receive 0.123 shares of Stratasys for each share owned, equal to about $1.88 per share. Once the deal closes — expected to happen in the fourth quarter — Stratasys shareholders will own 59% of the new company, while Desktop shareholders will own the remaining 41%. Minneapolis-based Stratasys expects the deal to boost growth and said the new company will target $1.1 billion in 2025 revenue. “The combination of these two great companies marks a turning point in driving the next phase of additive manufacturing for mass production,’ said Ric Fulop, chief executive of Burlington, Mass.-based Desktop Metal in a statement. The two companies are active in the aerospace, automotive, consumer products, healthcare and dental sectors. Both companies reaffirmed guidance for 2023 offered with their first-quarter earnings. Desktop Metal stock rose 6.3% premarket, while Stratasys fell 2%.
This article was originally published by Marketwatch.com. Read the original article here.
