Merger between Objet and Stratasys creates mega-3D printing group

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Stratasys and Objet, two of the world’s leading 3D-printing firms, have combined to create a group with a market value of $1.4bn (£883m).

Shareholders of Stratasys – a publicly-held firm based in the US – will receive one share in the new firm for each share of Stratasys that they own, officials said in statement.

Stratasys shareholders will own 55% of the new firm, which will operate as Stratasys.

David Reis – chief executive of the Israel-based Objet – will serve in the same capacity of the new firm, which will have headquarter offices in both the US and Israel.

The merger is expected to create a company with an impressive portfolio of 3D printing and direct digital manufacturing products, officials said.

Stratasys posted sales of almost $156m (£98m) in 2011. The new firm is expected to have annual sales growth of at least 20%, according to people familiar with the deal.

Objet was founded in 1998 and uses technology based on more than 110 patents and patent pending inventions.

Stratasys patented its base technology in 1988 and has more than 180 patents and patents pending.

Plastics parts designers have increasingly used 3D printing and rapid prototyping in recent years.

Earlier this year, Objet began exhibiting a fully-assembled concept-car dashboard printed in 3D.

Wall Street’s initial reaction to the deal was positive, sending Stratasys’ per-share stock price up almost 15% to $41.30 (£26.30) in late trading yesterday.