2023-08-06 18:29:10
This week there will be more clarity regarding whether Stratasys will be acquired by 3D Systems or merge with Desktop Metal. Ric Fulop, CEO of Desktop Metal, still believes in the latter. Not because you have to, but because it offers an opportunity.
“This is not a deal we should make, but we believe that joining with Stratasys will create the first AM company to achieve significant scale across the entire manufacturing parts lifecycle, from prototyping to full-scale serial production,” said Ric Fulp of Desktop. Metal in the notes to Desktop Metal’s second quarter results. These show a decrease in losses ($15 million), while Desktop Metal still had over $127 million in cash at the end of the quarter.
Losses are down, $127 million left in cash
Technology and distribution network unique opportunity
Ric Fulop elaborated on the planned merger with Stratasys. According to him, the strength of the new combination lies in the Desktop Metal portfolio, which complements that of Stratasys, and the innovative power with the distribution network that Stratasys has. Sales will increase to $1.1 billion. And more than half of the combined turnover will then come from the fast-growing AM activities for production parts. Financially, he sees $50 million in cost savings per year and the same in terms of synergy benefits.
Independently further the other option
Should the Desktop Metal shareholders decide otherwise, then the long-term strategy of the company remains intact, Fulop further indicated. He remains committed to a future $100 billion additive manufacturing market. If Stratasys backs out of the deal with Desktop Metal, it will have to pay a break-up fee of $32 million.
Stratasys’ annual shareholders’ meeting will be held on August 8. Then perhaps there will be more clarity regarding how the board views the offer of 3D Systems.
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