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3D Systems confirmed submission of a proposal to combine with Stratasys in a cash and stock merger, creating a larger additive manufacturing industry entity.
For the medical device industry, the combined entity would offer SLS (Laser-Based Fusion), SAF (Powder Bed Fusion) and DMP metals.
The proposed 3D Systems/Stratasys combination offers:
Scale to Lead the Additive Manufacturing Industry – the combined company will offer increased go-to-market opportunities and unmatched customer value proposition, improving market coverage and access for customers looking for additive manufacturing solutions.
Significant Value Creation – through realization of approximately $100 million in estimated cost synergies. The proposal, inclusive of estimated cost synergies, represents value creation to Stratasys shareholders worth $1.8 billion and represents a value of approximately $25 per Stratasys share, or a 70% value uplift.
Industry-leading Financial Profile – pro forma estimated revenue for a combined 3D Systems/Stratasys in calendar year 2024 is $1.3 billion, resulting in the largest pure-play additive manufacturing company in the industry, before considering any potential additional revenue opportunities.
Transactional Speed and Certainty – including regulatory approvals obtainable in a timely manner.
“The combination of 3D Systems and Stratasys is simply the best outcome for the shareholders of both companies,” said President and CEO, Dr. Jeffrey Graves. “We feel strongly that now is the time for all parties to recognize the overwhelming logic of our two businesses coming together. We are in a unique position to move with confidence and speed and we encourage the Stratasys Board of Directors to engage with our proposal and make this combination a reality for the benefit of the shareholders, employees and customers of both companies.”
Dr. Graves continued, “We are at an inflection point in our industry, and we see significant upside for our shareholders and all stakeholders by capturing the benefits of scale, enhancing investment in innovation and delivering long-term profitable growth. We know and respect the Stratasys business and the people who make it a success around the world. We are committed to creating a combined platform that enables these two great companies to serve our global customers and lead the industry with innovative technology offerings.”
Source: 3D Systems
