The acquisition gives Stratasys a leading consumer 3D printing platform, and gives MakerBot the deep pockets it needs to grow and compete.
Two of the bigger 3D-printing manufacturers plan to merge into a single entity with a strong position against competitors big and small.
Hewlett-Packard will begin selling Stratasys' 3D printers for design markets later this year under its own brand name.
This story originally reported that financial terms of the merger between Stratasys and MakerBot were not announced. The companies said it was a stock-for-stock transaction worth about $403 million.
Stratasys' Objet500 Connex3 3D printer is capable of creating products in one print job that are rigid, flexible, and come in hundreds of colors.
The Brooklyn-based 3D printer-maker remains the promising poster child of the industry. At this year's Consumer Electronics Show, Makerbot will set the tone for the quickly-changing landscape for 2014, and CNET will be there live.
The capabilities of the Stratasys Objet500 Connex3 3D printer have been demonstrated to gorgeous effect by designer and engineer Michaella Janse van Vuuren.
Wired reports 3D printer manufacturer Stratasys has nullified a lease agreement with Defense Distributed.
The 3D-printing company is "on a mission," according to Chief Executive Bre Pettis. In an initiative supported by the White House, MakerBot is turning to crowdsourcing to fund the scheme.