Stratasys and Desktop Metal’s Merger was Terminated
3 October, 2023
Stratasys' Board adopted a Poison Pill to prevent Hostile takeover. 3D Systems reitrates its previous proposal to acquire Stratasys
The previously announced $1.8 billion merger between the two Additive Manufacturing Solutions providers, Stratasys and Desktop Metal, has been terminated after Stratasys’ shareholders rejected the deal during an extraordinary general meeting held last week. Following the resolution, Stratasys announced that its Board of Directors has initiated a process to explore strategic alternatives for the company, that may include a strategic transaction, potential merger, business combination or sale, or other. Additionally, Stratasys’ shareholder rights plan (“Poison Pill”) was extended for three more months.
Stratasys re-activated the Rights Plan in order to prevent hostile takeover, following purchace attempts made by Nano Dimensions and 3D Systems. Since June 2023, Stratasys has received multiple unsolicited proposals from 3D Systems, which was rejected by the board. But the termination of Desktop Metal’s deal provides new opprtunities in this direction. 3D Systems issued a statement regarding Stratasys’ process to explore strategic alternatives, saing that its merger agreement proposal expires on October 5, 2023. “3D Systems is willing to amend its current binding proposal to include a 60-day go-shop period. During this period, Stratasys would be permitted to actively solicit alternative proposals to acquire Stratasys.”
President and CEO of 3D Systems, Dr. Jeffrey Graves stated, “We continue to believe that a combination between 3D Systems and Stratasys presents the most attractive opportunity for Stratasys shareholders and the additive manufacturing industry at large. This amendment reflects our confidence in the superior value of our proposal and our belief that the market has already had more than enough time to evaluate interest in Stratasys, which has already yielded ten offers for Stratasys in the last six months.”
Stratasys provides 3D printing solutions based on polymer materials for industries such as aerospace, automotive, consumer products, healthcare, fashion and education. Its revenues for H1 2023 totalled $210 million, compared with $229 million in H1 2022. 3D Systems offers to buy Stratasys at a price tag of $27 per share. Today the company is traded in NASDAQ for $13.1 per ordinary share.