EDEN PRAIRIE, MINN. (April 16, 4:25 p.m. ET) — 3D printer leaders Stratasys Inc. and Objet Ltd. have combined to create a giant in that field. The combined firm will have a market value of $1.4 billion.
Shareholders of Stratasys — a publicly held firm based in Eden Prairie, Minn. — will receive one share in the new firm for each share of Stratasys that they own, officials said in an April 16 news release. Stratasys shareholders will own 55 percent of the new firm, which will operate as Stratasys Ltd.
David Reis — CEO of Rehovot, Israel-based Objet — will serve as CEO of the new firm, which will have headquarters offices in both Eden Prairie and Rehovot.
The merger is expected to create a company with an impressive portfolio of 3D printing and direct digital manufacturing products, officials said in the release.
Stratasys posted sales of almost $156 million in 2011. The new firm is expected to have annual sales growth of at least 20 percent, officials said.
Objet was founded in 1998 and uses technology based on more than 110 patents and patent pending inventions. Stratasys patented its base technology in 1988 and has more than 180 patents and patents pending.
Plastics parts designers have increasingly used 3D printing and rapid prototyping in recent years. Earlier this year, Objet began exhibiting a fully-assembled concept-car dashboard printed in 3D.
Wall Street's initial reaction to the deal was positive, sending Stratasys' per-share stock price up almost 15 percent to $41.30 in late trading April 16.