Stratasys files preliminary Form F-4, additional revenue, EBITDA estimates

Stratasys (SSYS) filed a preliminary Form F-4 with the U.S. Securities and Exchange Commission and certain revenue and EBITDA estimates for its proposed combination with Desktop Metal, Inc. (DM). The company said: “The combination creates an at-scale growth additive manufacturing company that is expected to generate more than $1.6B of revenue and more than $300M of EBITDA in 2026 at base case, for a 20% pro forma EBITDA margin. This growth reflects a top-line compound annual growth rate of 19% from 2022 to 2026, compared to an estimated 14% CAGR for standalone Stratasys over the same period. These estimates include $50M in run-rate cost synergies and $50 million in run-rate revenue synergies expected to be fully realized by 2025. Even in the downside case, the combined company is expected to generate more than $1.4B of revenue and $200 million of EBITDA in 2026, for a 14% pro forma EBITDA margin. The expected synergies are in addition to Desktop Metal’s $100M annualized cost savings plan, of which $75M has already been captured, enabling generation of positive operating cash flow in the 12 months following the close of the combination.”