Stratasys’ ( SSYS Quick Quote SSYS - Free Report) wholly-owned subsidiary, MakerBot, has entered into an agreement with Netherlands-based Ultimaker to join their businesses and form a new entity headquartered in both the Netherlands and New York for the global advancement of additive manufacturing technology.
The newly formed entity will offer combined desktop 3D-printing solutions to a broad base of customers by joining their teams and leveraging additional funding. This will jointly enhance both MakerBot and Ultimaker’s hardware, software and materials portfolios while expanding their international presence across Americas, EMEA and APAC.
The merger transaction deal, expected to close in the next couple of quarters, depicts support for sustainable manufacturing. It is subject to gain from an investment worth $62.4 million in cash for ensuring access to new markets.
The Co-CEOs of the new company will be Nadav Goshen, current MakerBot CEO, who will manage operations and R&D, and Jürgen vonHollen, current Ultimaker CEO, who will manage commercial functions.
Stratasys has been benefiting from an increase in demand for 3D-printed materials, and its focus on product launches and strategic partnership agreements or acquisitions. Notably, in January, its subsidiary, MakerBot, expanded its offering of advanced engineering materials for the MakerBot METHOD 3D-printing platform with the addition of three new LUVOCOM 3F materials from LEHVOSS Group, a leading provider of high-performance thermoplastics for industrial sectors.
Zacks Rank & Key Picks
Stratasys currently carries a Zacks Rank #3 (Hold). Shares of SSYS have plunged 12% and in the past year.
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