Stratasys and Desktop announce a merger vote amidst an investigation by the DOJ regarding antitrust concerns.

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In a recent development in the 3D printing industry, Stratasys and Desktop Metal are in talks for a potential merger. While negotiations with 3D Systems are still ongoing, Stratasys has expressed its intent to merge with the smaller company Desktop Metal. Shareholders of Stratasys will be voting for or against the deal at an Extraordinary General Meeting (EGM) on September 28, 2023. Both boards of directors are urging investors to vote in favor of the merger.

Under the proposed deal, shareholders of Desktop Metal will receive ordinary shares of Stratasys at a fixed ratio, resulting in them owning approximately 41% of the combined company. Stratasys shareholders will hold the remaining 59%. The value of the deal is dependent on the market price of Stratasys ordinary shares, which was around $1.83 per share of Desktop Metal stock.

To proceed with the merger, the agreement must be approved by both parties, and they must also navigate through a probe conducted by the U.S. Department of Justice (DOJ). The DOJ is investigating whether the merger would violate antitrust laws, specifically the Hart-Scott-Rodino Antitrust Improvements Act of 1976. Both companies have received a “second request” from the DOJ’s Antitrust Division, indicating a need for a more detailed analysis of the merger. This process could potentially delay the completion of the deal.

The HSR Act requires large businesses seeking to merge or acquire another company to notify the Federal Trade Commission (FTC) and the DOJ. The usual waiting period is 30 days, during which the authorities evaluate if the deal could reduce competition. If there are concerns, the government can request additional information, extending the waiting period or even taking legal action to block the deal.

While a preliminary investigation is common in the 3D printing industry, a “second request” is rarer. The DOJ’s duty is to investigate mergers of a certain magnitude, and in the past, it terminated its investigation early in the case of Stratasys’s merger with Objet in 2012. The argument made was that the two companies’ products were more likely to complement each other than to act as substitutes, minimizing competitive concerns. In the current case, the DOJ may have concerns about the overlap between Stratasys and Desktop Metal’s vat photopolymerization lines.

Considering Desktop Metal’s smaller size compared to 3D Systems, the potential merger between Stratasys and 3D Systems could face even more complex regulatory hurdles. Both companies offer similar products in the industry, such as polymer powder bed fusion, vat photopolymerization, fused deposition modeling, and inkjet products. They are also the two largest pure-play companies in the market.

It remains to be seen how the shareholder vote and DOJ investigation will shape the outcome of the potential merger. However, any decision made will have significant implications for the future of the 3D printing industry, potentially reshaping the competitive landscape and driving further innovation in the additive manufacturing field.

Welcome to our blog post, where we will be discussing the dynamic competition and technological advancements in the 3D printing industry. In recent news, there has been a lot of buzz surrounding the merger between two major players, Stratasys and Desktop Metal (DTM). This merger has the potential to bring about lower prices for customers and further improvements in rapid prototyping systems.

However, the merger did not come without its challenges. There was initial resistance to the deal, with a lawsuit filed to block the transaction. Eventually, an agreement was reached, allowing the merger to go through on the condition that Stratasys and DTM license their rapid prototyping patents to a company outside of the U.S. This move aims to introduce a new competitor to the U.S. market and ensure healthy competition.

Interestingly, this investigation into Stratasys and Desktop Metal serves as a test for a potential future combination between Stratasys and another major player, 3D Systems. The outcome of this investigation can provide valuable insights into the environment these companies would face if they were to engage in a more substantial merger. The complexity of the deal is further compounded by the involvement of Nano Dimension, an Israeli electronics 3D printer manufacturer, that fought to acquire Stratasys but has since shifted its strategy.

The ultimate impact on the industry will depend on the outcomes of these events. Will Stratasys and DTM’s merger lead to the desired lower prices and advancements in rapid prototyping? What will happen with the potential future merger between Stratasys and 3D Systems? These questions will shape the future landscape of the 3D printing industry.

As the industry continues to evolve and innovate, we can expect to see further mergers and acquisitions. This will undoubtedly have a profound impact on the market and shape the direction in which the industry heads. It is crucial to stay updated on the latest news and developments in the 3D printing industry, as well as explore potential opportunities that arise from these changes.

Make sure to stay connected with us to receive the latest updates and information from the 3D printing industry. We will keep you informed about the latest news, trends, and offers from vendors in this fast-paced and ever-changing industry.

Let’s embrace the exciting possibilities that lie ahead and look forward to the continued growth and innovation in the 3D printing world!

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