Stratasys Ltd., a manufacturer of industrial 3D printers, and Desktop Metal Inc. entered into a definitive agreement whereby the companies will combine in an all-stock transaction valued at approximately $1.8 billion. Burlington, Mass.-based Desktop Metal specializes in metal 3D printing. The transaction unites the polymer strengths of Stratasys with the complementary industrial mass-production leadership of Desktop Metal’s brands, creating an additive-manufacturing company that is expected to be well-positioned to serve the evolving needs of customers in manufacturing.

Terms of the agreement have been unanimously approved by the Boards of Directors of both companies. Following the closing of the transaction, which is expected to occur in the fourth quarter of 2023, existing Stratasys shareholders will own approximately 59% of the combined company, and legacy Desktop Metal stockholders will own approximately 41% of the combined company.

Bringing together Stratasys’ and Desktop Metal’s additive manufacturing platform offerings, the combined company will have a broad product portfolio and attractive positions across multiple additive-manufacturing technologies and solutions. The combined company is expected to offer solutions from designing, prototyping and tooling to mass production and aftermarket operations across the entire manufacturing lifecycle. Together, Stratasys and Desktop Metal have invested over $500 million in research and development over the last four fiscal years. In addition, the combined company will employ over 800 scientists and engineers focused on driving innovation across a differentiated materials library.