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Stratasys, Objet To Merge - Quick Facts

Stratasys Inc (SSYS) and privately held Object have agreed to merge in an all-stock transaction, with a combined equity value of around $1.4 billion, which is based on the closing price of Stratasys' stock on April 13, 2012. The boards of both companies have unanimously approved the definitive agreement.

Pursuant to the agreement, Stratasys would merge with a subsidiary of Objet, and Stratasys shareholders would receive one share of the new combined company for each common share of Stratasys they own. Following the transaction closure, Stratasys shareholders are expected to own 55 percent and Objet shareholders to own 45 percent of the combined company on a fully diluted basis using the treasury stock method.

The combined company, which would retain the Stratasys name and operate under the name Stratasys Ltd., would have dual headquarters in Eden Prairie, Minnesota and Rehovot, Israel, the locations of Stratasys' and Objet's current headquarters, respectively, and would be registered in Israel. The company would continue to trade on NASDAQ under the ticker SSYS. Scott Crump, co-founder, current chief executive and chairman of Stratasys, would become full-time chairman of the combined company.

The transaction, which may be complete in the third quarter of 2012, is expected to be accretive to cash earnings per share within the first 12 months after closing. Also, it would be taxable to Stratasys shareholders.

In addition, Stratasys reported its first-quarter 2012 preliminary results, expecting GAAP net profit of some $4.3 million - $4.7 million, or $0.20 - $0.22 per share, non-GAAP net profit of about $5.6 million - $6.3 million or $0.27 - $0.29 per share on revenue of nearly $45.0 million.

On average, 5 analysts polled by Thomson Reuters project earnings per share of $0.26 on $41.64 million revenue for the quarter. Analysts' estimates typically exclude one-time items.

by RTT Staff Writer

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