Merger just announced between Stratasys and Desktop Metal. Desktop Metal and Styratasys to merge, deal to close in Q4 of 2023. They hope to combine their complementary product portfolios and say they could generate $1.1 Billion in Revenue with Adjusted EBITDA Margin of 10%-12% in 2025. I do an analysis of the deal and look at the risk and potential reward.

Yes, the firms will be big and be able to cross sell a wide ranging portfolio that they could cross sell. But, a less mature, more complex technology (binder jet) will have to be responsible for a lot of revenue. Meanwhile their materials unit married to Envisiontec´s DLP installed base could really create a real profit center there. In the long run the large size of the firm could make them forge ahead. But, in the medium term this approach entails a lot of risk.

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