Stratasys and Desktop Metal Announce Merger

Additive manufacturing industry giants Stratasys and Desktop Metal have announced their merger, signifying a significant milestone in the additive manufacturing sector. The all-stock deal values the combined company at USD$1.8 billion and is expected to close in the fourth quarter of 2023. Stratasys shareholders will hold a 59% stake in the new entity, while Desktop Metal shareholders will own the remaining 41%.

Strategic M&A Activities

Both Stratasys and Desktop Metal have actively engaged in mergers and acquisitions in recent years. Desktop Metal has expanded its technology portfolio by acquiring several companies, including ExOne and EnvisionTEC, enabling the company to offer a range of additive manufacturing solutions beyond metals. 

VITA Zahnfabrik & Stratasys to Collaborate on TrueDent with VITA’s Tooth Shades

Stratasys, on the other hand, has focused on strengthening its presence in the polymer space through strategic acquisitions of Xaar 3D, Origin, RPS, and Covestro’s AM business unit.

Diversified Technology Portfolio

The merger between Stratasys and Desktop Metal creates a combined company with a diverse technology portfolio, making it a formidable competitor to other additive manufacturing hardware providers like 3D Systems and EOS. 

Once merged, the company will offer eight different additive technologies, covering a wide range of materials such as polymers, metals, ceramics, composites, wood, and sand.

Align and Desktop Metal announce strategic partnership

Turning Point for Additive Manufacturing?

The merger between Stratasys and Desktop Metal raises questions about the future of additive manufacturing and whether this move indicates the beginning of industry consolidation. 

However, it is challenging to classify the entire additive manufacturing industry as being in a specific stage of growth or maturity, given the various technologies and their varying levels of development. While this merger may mark a significant turning point, the industry as a whole continues to experience expansion and innovation.