Stratasys Merger is Major Coup
Israel’s Objet Ltd. said Monday it is no longer looking at the IPO track and instead will merge with 3D print maker Stratasys Inc. (NASDAQ:SSYS) in a stock deal that values the two at about $1.4 billion.
The new combination will be 55 percent owned by Stratasys shareholders but will be headed by Objet CEO David Reis, with Stratasys CEO Scott Crump becoming full-time chairman.
The new company will operate under the name Stratasys Ltd. and continue to trade with the same stock ticker.
“The combined marketing and sales capabilities will provide extensive geographic reach, which should help grow customer awareness of the many opportunities to employ 3D printing and rapid prototyping techniques,” the companies said.
Objet filed on March 22 to raise up to $75 million in an initial public offering but was maintaining talks with Stratasys to keep options open. As of April 13, Stratasys had a market valuation of about $766 million.
There will be little overlap in products, as Stratasys serves Caterpillar (NYSE:CAT), Xerox (NYSE:XRX), and Honeywell International (NYSE:HON), while Objet’s customers include Adidas, Intel Corp (NASDAQ:INTC), 3M (NYSE:MMM), and auto makers like Jaguar, Bentley, and Mercedes.
According to Thomson Reuters, analysts expect an adjusted profit of 26 cents and revenue of $41.6 million.