Stratasys Ltd. is in talks to acquire Desktop Metal Inc. in an all-stock deal that would create a leading 3D printer company in a fragmented industry, according to people familiar with the matter. 

A deal valuing the combined company at about $1.8 billion could be announced as early as this week, the people said, asking not to be identified discussing confidential information. Stratasys shareholders would own a majority of the combined company, the people said. While talks are advanced, they could still fall apart or be delayed, the people added.

Representatives for Desktop Metal couldn’t immediately be reached for comment. A representative for Stratasys declined to comment.

Several next-generation, 3D-printing companies have sprung up over the past decade, with venture capital investing heavily in the space. These companies have been looking to upend how industrial manufacturing can be done, by making the process more efficient.

Consulting firm Wohlers Associates expects the 3D printing industry to expand to more than $100 billion by 2032.

3D printers can make objects from a variety of materials such as plastics, metal and cement, using a digital design as a guide. According to Stratasys’ website, its products can be used in a range of industries including aerospace, automotive, consumer products and medical. Desktop Metal says it has more than 6,000 customers in several of the same industries as Stratasys, including automotive and consumer.

Desktop Metal, based in Massachusetts, went public in 2020 in a deal with a special purpose acquisition company sponsored by former cable executive Leo Hindery Jr. Kleiner Perkins, NEA and Alphabet Inc. are among its largest shareholders, according to data compiled by Bloomberg.

Stratasys, headquartered in Minnesota and Israel, has been rebuffing recent takeover overtures from 3D printer rival Nano Dimension Ltd.