The 3D printing merger/acquisition train rolls on with Stratasys and Objet coming together as one. This is a biggie for the 3D production sector because the combined company could be valued at as much as $1.4 Billion.
This is a good move for each of the companies because the technologies and markets for the respective companies are different. Pubicly traded Stratasys is a leading manufacturer of 3D printers and production systems for prototyping and manufacturing applications, whereas privately held Objet Ltd. is a leading manufacturer of 3D printers for rapid prototyping.
The transaction will position the combined company as the leader within the high-growth 3D printing and direct digital manufacturing industry.
The combined company will retain the Stratasys name and operate under the name
Stratasys Ltd., and will have dual headquarters in Eden Prairie, Minnesota and Rehovot, Israel, the locations of Stratasys’ and Objet’s current headquarters,respectively.
Some of the strategic and financial benefits of the transaction will include:
- Expanded product (machine and material) portfolio
- Expanded sales and marketing reach
- Enhanced functional capabilities and scale
- Enhanced leadership and management team
- Strengthened financial performance
- Attractive long-term operating models
So, what’s not to like about this merger? For one, industry consolidation, while a fact of life, is not always a good thing with fewer choices and competitors. At the rate things are going, we may eventually be down to Stratasys and 3D Systems as about the only major players standing. Also, while the CEOs of both companies seem pleased with the announcment, corporate cultures don’t always merge quite so smoothly and can tend to clash.
However, that said, this is a big deal, and it will be interesting to see how this deal influences the rest of the 3D printing/rapid prototyping/rapid manufacturing industry.