Stratasys, Ltd. (SSYS) Buys 3D Printer Company MakerBot For $403 Million

Posted Jun 19, 2013

Stratasys, Ltd. (NASDAQ:SSYS) has acquired 3D printer company MakerBot for $403 million in a stock-to-stock deal.  Stratasys is a 3D industrial printing and manufacturing company.

Founded in 2009, MakerBot became a leader in the desktop 3D printing market and is responsible for the largest installed base of 3D printers in their category.  MakerBot made the accessibility of 3D printers much easier.  MakerBot has sold over 22,000 3D printers since 2009.  The MakerBot Replicator 2 Desktop 3D Printer accounted for 11,000 of those sales alone.

“The combination of these two industry leaders is expected to drive faster adoption of 3D printing for multiple applications and industries, as desktop 3D printers are becoming a mainstream tool across many market segments. Upon completion of the transaction, MakerBot will operate as a separate subsidiary of Stratasys, maintaining its own identity, products and go-to-market strategy,” said the companies in a statement.  “The merger enhances Stratasys? leadership position in the rapidly growing 3D printer market, by enabling Stratasys to offer affordable desktop 3D printers together with a seamless user experience. The merger is expected to be completed during the third quarter of 2013; and it is subject to regulatory approvals and other conditions customary for such transactions.”

MakerBot’s 3D Ecosystem helps drive the rapid adoption of their desktop 3D printers.  MakerBot’s 3D Ecosystem includes MakerWare software, the MakerBot Retail Store, MakerBot Filament, and MakerBot 3D Photo Booth.  The Ecosystem also includes partnerships with Autodesk, Nokia, Adafruit, OUYA, MoMA, and Amazon.  MakerBot also announced the MakerBot Digitizer desktop 3D scanner.

Stratasys, Ltd. is going to issue around 4.76 million shares in exchange for 100% of the outstanding capital stock of MakerBot.  The merger has an initial value of $403 million based on the closing stock price of $84.60 as of June 19, 2013.

MakerBot stakeholders will also be qualified for performance-based earn-outs that provide for the issue of up to an additional 2.38 million shares through the end of 2014.  This merger expected to accelerate Stratasys? growth rate.

MakerBot will operate as a separate subsidiary.  The MakerBot brand will be preserved and the company’s management team will remain in place.  MakerBot and Stratasys will jointly develop and implement strategies together that builds on their strengths and intellectual property.