Israeli 3D printing company Stratasys (NASDAQ: SSYS) is in talks to acquire US 3D printing company Desktop Metal Inc. (NYSE: MD), Bloomberg reports. The sources said the all-stock deal would create a leading 3D printer company, people familiar with the matter told Bloomberg, and the deal would value the combined company at about $1.8 billion.
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And “Bloomberg” added that if the merger is completed, Stratasys shareholders will own the majority of the combined company, warning that while the talks are progressing and could even be completed this week, they may also stall.
The 3D printing sector is a highly fragmented industry ready for consolidation. Desktop Metal has more than 6,000 customers in many of the same industries as Stratasys, including automotive and consumer, Bloomberg reports. Rehovot-based Stratasys has been the subject of a hostile takeover by a cash-rich Israeli 3D printing company. nano dimensions (NASDAQ: NNDM) in recent months. In response, Stratasys, led by CEO Dr. Yoav Ziv, adopted a limited-term shareholder equity (poison pill) plan to block the takeover, which was valued at about $1.2 billion.
Stratasys stock closed down 2.49% on the Nasdaq yesterday at $14.88, giving a market capitalization of $1.018 billion. The share price rose 0.54% in aftermarket trading.
The share price of Desktop Metal fell by 4.89% on Wall Street yesterday, to a market capitalization of $562.5 million, but rose by 21.14% in aftermarket trading following the “Bloomberg” report.
Published by Globes, Israel business news – en.globes.co.il – on May 25, 2023.
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