3D Systems, a seller of 3D printers and related products, announced that it has proposed to merge with Stratasys, a provider of end-to-end additive manufacturing (AM) solutions.

Under the proposed merger, Stratasys shareholders would receive USD 7.50 in cash and 1.2507 newly issued shares of 3D Systems common stock, resulting in a combined company where Stratasys shareholders own 40% and receive ~USD 540 million in cash.

With the assumption of around USD 100 million in cost synergies and a set of illustrative assumptions, the merged company is expected to provide Stratasys shareholders with a total value of over USD 1,840 million. These terms also imply a nominal initial value per Stratasys share of approximately USD 19, representing a premium of 27% to Stratasys' closing trading price on May 24, 2023.

The combined company is expected to offer increased go-to-market opportunities and improve user experience, with the aim of generating revenue of USD 1.3 billion in 2024 as the largest pure-play additive manufacturing company in the industry.

Analyst QuickTake: This news comes just a week after Stratasys and Desktop Metal announced that the two companies have entered a definitive agreement to merge in an all-stock transaction, which would allow Stratasys holders to own approximately 59% of the combined company. Last week, Stratasys also rejected Nano Dimension’s partial tender offer (following the offer to fully acquire the company in March which was also rejected).