Israeli 3D printer company Objet has dropped plans for an IPO and instead will merge with American 3D printer maker Stratasys in a deal that will create a $1.4 billion company.

The merge positions the combined company as a leader within the high-growth 3D printing and direct digital manufacturing industry.

According to terms of the agreement, Stratasys shareholders will receive one share of the new combined company for each share of Stratasys common stock they own. Upon closing of the transaction, Stratasys shareholders are expected to own 55 percent and Objet shareholders are expected to own 45 percent of the combined company.

“We are bringing together two of the most innovative and respected players in the field to create a global leader in a high-growth industry. Together we will have a broader and more comprehensive product and technology portfolio, and the resources, team and financial strength to achieve our goals,” said Scott Crump, chief executive officer and chairman of Stratasys.

The combined company will retain the Stratasys name and will have dual headquarters in Eden Prairie, Minnesota and Rehovot, Israel (the locations of Stratasys’ and Objet’s current headquarters).

Objet was founded in 1998 by veteran Israeli printing engineers. The company has over 400 employees – with some 280 based in Israel.

“We are excited to be joining forces with Stratasys,” said David Reis, chief executive officer of Objet. “This transaction creates an organization that will provide a broad range of rapid prototyping and direct digital manufacturing applications to our customers, and the ability to bring exciting new products to the market. With an impressive technology portfolio, great talent, and an extensive sales and marketing channel, we will be well positioned to achieve efficient growth, expand our distribution reach and create value for all of our stakeholders. We look forward to working with Stratasys employees to take our combined company to the next level.”