Stratasys Rejects Offers From 3D Systems and Nano Dimension
)
Stratasys (SSYS:US), a 3D company based in Israel, announced on Tuesday it still plans to pursue its merger with Desktop Metal (DM:US) despite a last-minute offer from rival 3D Systems (DDD:US).
In May, Stratasys announced an all-stock merger with Desktop Metal worth around $1.8 billion. Once combined, the two companies are expected to generate around $1.1 billion in 2025 revenue, they said.
Under the terms of the deal, Desktop Metal shareholders will receive 0.123 ordinary shares of Stratasys for each share of Desktop Metal Class A common stock. Following the closing of the deal, existing Stratasys shareholders will own approximately 59% while the remaining stake will be owned by Desktop Metal stockholders.
"The combination with Desktop Metal will accelerate our growth trajectory by uniting two leaders to create a premier global provider of industrial additive manufacturing solutions,” said Dr. Yoav Zeif, CEO of Stratasys.
Despite the agreement, 3D Systems launched an offer to acquire Stratasys in a cash-and-stock deal. Nano Dimension (NNDM:US), another major player in the 3D sector, also launched its offer to buy Stratasys.
On Tuesday, Stratasys said it still believes the Desktop Metal deal is the best way to go forward.
“[Our] Board of Directors has unanimously determined that the May 30, 2023 unsolicited non-binding indicative proposal from 3D Systems Corporation to acquire Stratasys does not constitute a “Superior Proposal” and does not provide a basis upon which to enter into discussions with 3D Systems pursuant to the terms of the merger agreement with Desktop Metal,” it is said in a filing.
Senator Tommy Tuberville was actively trading SSYS shares in 2022.
