Stratasys Ltd., the leader in 3D printing and additive manufacturing, and MakerBot, the leader in desktop 3D printing, signed a deal that would make MakerBot a subsidiary of Stratasys while maintaining its independence.

The stock-for-stock transaction is valued at $403 million and is expected to drive 3D printing adoption faster. To foment that, the partnership will extend Stratasys’ product offering to include a full range of 3D printing capabilities.

MakerBot currently leads the desktop 3D printer market, selling 22,000 units since it was founded in 2009.  Half of that number is from sales of the the MakerBot Replicator 2 from the previous 9 months.

The merger is expected to be completed in the third quarter of 2013 provided that regulatory boards approve of the transaction as well as ironing out all the kinks that comes with any merger.

Why MakerBot?

Stratasys could have bought any startup 3D desktop printer maker if it wanted to at a lower value so why did it choose MakerBot?

MakerBot is a full package.  It has Thingiverse.co, the largest collection of downloadable digital designs for making physical objects empowered by a growing community 3D printing enthusiasts, MakerWare software, MakerCare service, MakerBot Filament, the MakerBot Retail Store, the MakerBot 3D Photo Booth, and strategic partnerships with Autodesk, Adafruit, Nokia, OUYA, MoMA and Amazon, and it has a desktop 3D scanner, the MakerBot Digitizer, in the works.

This provides Stratasys the opportunity to sell 3D desktop printers and scanners at a cheaper price than anything currently available; this frees the company up to put more research and development to be able to offer better desktop 3D printers.

As for MakerBot, this is a great opportunity for them as it will give them access to new technology, Stratasys’ pool of engineering talent, and resources that it can use for marketing and distribution.