MakerBot, the Brooklyn-based start-up that makes 3-D printers, has agreed to sell itself to its larger rival Stratasys, the companies announced on Wednesday.
The all-stock deal is valued at $403 million based on the closing price of Stratasys stock on Wednesday. It also includes earn-outs based on performance, which, if paid, would be worth up to $201 million based on Wednesday’s stock price.
The transaction, which is subject to regulatory approval, is expected to be completed in the third quarter. Under the terms of the deal, MarkerBot will operate as a separate subsidiary of Stratasys with its existing board and management in place.
“The last couple of years have been incredibly inspiring and exciting for us,†Bre Pettis, the chief executive and co-founder of MakerBot, said in a statement. “Partnering with Stratasys will allow us to supercharge our mission to empower individuals to make things using a MakerBot, and allow us to bring 3-D technology to more people.â€
Makerot, which was founded in 2009, is credited with helping to popularize 3-D printing with machines that “print†plastic objects. The company’s printers are used by engineers and designers as well as hobbyists.
MakerBot generated $11.5 million in revenue in the first quarter of this year. Its revenue for all of last year was $15.7 million.
Stratasys, itself the result of a merger of two 3-D printing companies, caters to manufacturers, with printers used for prototyping. By merging with MarkerBot, Stratasys is hoping to offer “more accessible†desktop printers.
MakerBot raised $10 million in 2011 in a financing round led by the venture capital firm Foundry Group. The company’s investors include Bezos Expeditions, the investment firm of Jeff Bezos, the Amazon.com chief executive.
