Industrial additive manufacturers Stratasys and Desktop Metal have merged their companies, in a deal valued at approximately $1.8 billion, according to a release Thursday.
Israel-based Stratasys uses polymer materials to print parts for the aerospace, automotive, consumer products, healthcare, fashion and education industries. Burlington, Massachusetts-based Desktop Metal uses materials such as metal, polymer, sand and other ceramics to mass produce of industrial, medical, and consumer products
Together, the two companies will have a massive amount of industry knowledge, with 3,400 patents and pending patent applications and more than 800 scientists and engineers. The new company will serve more than 27,000 industrial customers across industries, materials and applications.
The new company’s customers will include major companies across the aerospace, automotive, medical and dental, consumer product and heavy industries, such as Lockheed Martin, Tesla, Toyota, Medtronic, Thermo Fisher Scientific, Amazon, Adidas, Stanley Black & Decker, Honeywell and Siemens, according to an event presentation regarding the merger.
The companies expect mass production offerings to increase to over $100 billion by 2032. Additionally, the industrial manufacturers expect to generate approximately $50 million in cost savings by 2025 after cost reductions in sales, general and administrative expenses, supply chain management and optimization of operational processes.
“We believe this is a landmark moment for the additive manufacturing industry,” said Desktop Metal Co-founder, Chairman and CEO Ric Fulop said in a statement. “The combination of these two great companies marks a turning point in driving the next phase of additive manufacturing for mass production. We are excited to complement our portfolio of production metal, sand, ceramic and dental 3D printing solutions with Stratasys’ polymer offerings.”
