Combined firm would create second billion-dollar 3D printing company
EDEN PRAIRIE, Minn. – Stratasys, a 3D printing firm based here, announced both a shareholders rights agreement and an intention to merge with Israel-based 3D printing firm Objet on Monday, in a deal that would create a $1.4 billion 3D printing firm. The rights agreement is sometimes referred to as a “poison pill,” and can be used to stave off unwanted overtures from potentially hostile investors while a merger goes through.
Current Stratasys stock owners would own about 55 percent of the combined company under the deal with Object should it got to completion.
“Today marks a significant milestone for Stratasys and an important development for the 3D printing and direct digital manufacturing industry,” Stratasys co-founder, chairman and CEO Scott Crump said in a statement. “Together we will have a broader and more comprehensive product and technology portfolio, and the resources, team and financial strength to achieve our goals.”
Asked about the deal after his keynote address at SPAR International in Houston, Abe Reichental , CEO of rival 3D printing firm 3D Systems, called the deal “a good thing.”
“I’m excited about it,” he said. “After we did all of our acquiring, you had to think there would be someone responding to what we were doing. It’s good for the market.”
3D Systems acquired Z Corporation earlier this year, establishing the first billion-dollar 3D printing firm. Now there is another.