The Impact of a Desktop Metal/Stratasys Merger

by Terry Wohlers and Clare Scott

On May 25, 2023, Desktop Metal and Stratasys announced a proposed merger that would form the largest additive manufacturing company in the world. The transaction is valued at $1.8 billion, with the deal expected to close in Q4 2023. A merger has the potential to create a more competitive entity. Together, the two companies offer eight different AM processes that involve metal, polymer, composites, ceramic, wood, and sand. Add to the mix interest from Nano Dimension and 3D Systems in acquiring Stratasys.

What would a merger mean for Desktop Metal and Stratasys, as well as the overall AM industry? It may give Stratasys increased stature, thanks to brand recognition and the size of the new company. Stratasys also benefits from Desktop Metal’s hundreds of dental- and metal-related patents, bringing the former’s intellectual property portfolio to a total of 3,400 granted and pending patents. Desktop Metal, meanwhile, is likely to see a sales boost from Stratasys’ strong distribution channel. This could also expand the AM industry in overall revenue.

Such a merger does not come without risk. Challenges are merging the multitude of company departments, including IT, accounting, sales, marketing, and executive management. According to Stratasys CEO Yoav Zeif, the merger will scale the companies and assure large manufacturers that they can trust additive suppliers. The size of a company, however, does not guarantee great products and services because small companies have been known to deliver consistent quality.

Mergers and acquisitions do not always benefit their industries, and it is too early to know if this merger would have a positive impact. It certainly could, but it remains to be seen how the new company would navigate the challenges inherent in such a large undertaking.

Mergers and acquisitions are not new to either company. Desktop Metal has acquired many companies in the recent past, growing its material portfolio to include polymers, ceramics, and composites. Stratasys, which only provides machines that produce polymer parts, nevertheless has also acquired several companies to expand its offerings. A combined and diversified portfolio could be a benefit, but it would require the expense of additional R&D, commercialization, support, and market development. Only time will tell what actual impact a merger would have.





Wohlers Report 2024

Wohlers Report 2024

Technical, market, and strategic advice on Additive Manufacturing 3D Printing Rapid Product Development

Related Press & News

April 2, 2024

Wohlers Associates Shows Metal Additive Manufacturing Growth of 24.4% in New Report

AM Exceeds $20 Billion—An Industry First WASHINGTON, DC, April 2, 2024—Wohlers Associates, powered by ASTM International, has announced Wohlers Report…

Read More
March 30, 2023

Wohlers Report 2023 Unveils Continued Double-Digit Growth

Today, Wohlers Associates, powered by ASTM International, announced the release of Wohlers Report 2023. This year’s report takes a deep dive into…

Read More
February 14, 2023

Wohlers Associates Publishes Specialty Report on Post-Processing

FORT COLLINS, Colo., Feb. 14, 2023 – Wohlers Associates, powered by ASTM International, has published Wohlers Specialty Report on Post…

Read More

Learn more about ASTM and AM CoE

ASTM unites with the Wohlers brand to build on its market influence and access to top AM industry decision-makers worldwide.

  • Establish standards, certification, and qualification for repeatable, consistent parts and processes
  • Prevent gaps and duplication of work in a dynamic, fast-paced technology space
  • Identify challenges that can be solved with technological improvement

Research and Development

Under the leadership of the R&D team, the AM CoE partners plan and conduct coordinated R&D projects, prioritized annually and targeted to expedite...

Learn More

Education and Workforce Development

Provide a comprehensive program that educates and trains the additive manufacturing workforce at all levels, while continually incorporating new advances...

Learn More