Stratasys, Objet to merge

MINNEAPOLIS, Minn., and Rehovot, Israel—Stratasys, Inc. and privately held Objet Ltd approved a merger agreement to create a new company with a combined equity value of approximately $1.4 billion.

The combined company, which will retain the Stratasys name and operate under the name Stratasys Ltd., will have dual headquarters in Eden Prairie, Minn., and Rehovot, Israel, the locations of Stratasys’ and Objet’s current headquarters, respectively, and will be registered in Israel.

According to the Stratasys and Objet, the merger will allow the combined company to offer complementary products and materials and bring together Objet’s expertise in design verification and visualization with Stratasys’ leadership in functional testing and direct digital manufacturing. In addition, the combined sales and marketing organization will include more than 260 resellers and selling agent entities globally.

Fiscally, the combined company expects to save between $7 million and $8 million of annual overhead expenses, as well as $3 million to $4 million in annual tax savings, beginning 18 months after the transaction closes.

Scott Crump, co-founder, CEO and chairman of Stratasys, will become full-time chairman of the combined company, while Objet CEO, David Reis, will take over as Stratasys’ CEO.

Following the closing of the transaction, four directors designated by Stratasys and four directors designated by Objet will form the nine-person the combined company’s board of directors. One additional director will be designated by Stratasys and approved by Objet.

In addition, the combined company will form an executive committee comprised of four members of the board of directors whose duties will include overseeing the integration of Stratasys and Objet and implementing the combined company’s business strategy.

Upon closing of the transaction, Stratasys shareholders are expected to own 55 percent and Objet shareholders are expected to own 45 per cent of the combined company.
www.stratasys.com
www.objet.com