Stratasys Rejected Nano Dimension’s Acquisition Proposal
26 March, 2023
During the recent weeks, Nano Dimension bought shares of Stratasys in the open market, until it had reached 14.5% ownership stake
Stratasys Board of Directors has unanimously rejected the unsolicited proposal it received from Nano Dimension to acquire Stratasys for $1.1 billion in cash ($18.00 per share). Stratasys announced last week that “Following a careful review, the Board concluded that Nano’s proposal substantially undervalues the Company in light of its standalone prospects and is not in the best interests of Stratasys and its shareholders.”
Stratasys is an additive manufacturing solutions provider with innovative 3D printing solutions for industries such as aerospace, automotive, consumer products, healthcare, fashion and education. Its 2022 annual sales totaled $651.5 million. Israel based Nano Dimension is a group of companies focused on rapid prototyping, high-mix-low-volume production solutions for the mechanical and electronics industries. Its 2022 annual sales totaled $31.5 million.
Yoav Stern, Chairman and Chief Executive Officer of Nano Dimension, said he is surprised by Stratasys’ response: “While we remain open to discussions, we are disciplined with regards to our growth strategy and will consider our options, relative to both Stratasys and alternative strategic acquisition targets currently under review.” During the recent weeks, Nano Dimension bought shares of Stratasys in the open market, until it had reached 14.5% ownership stake.
Aware to this quite move, Stratasys adopted in July 2022 a “poison pill” policy, under the name “Shareholder Rights Plan”. It was designed to reduce the likelihood that any entity, person or group would gain control of Stratasys through the open-market accumulation of the Company’s shares. It is yet unclear whether Nano Dimension will make another move to reach Stratasys. Nano Dimension itself is involved now in a bitter control struggle with some of its investors, led by the investments firm Murchinson, who seek to overthrow the CEO and take over the Board of Directors of Nano Dimension.
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