The American 3D printing company 3D Systems Corp. (NYSE: DDD) made an offer to acquire an Israeli 3D printing company Stratasys (Nasdaq: SSYS). The Israeli company’s shareholders now face a complex choice. Stratasys management has already received and rejected several unsolicited takeover offers from an Israeli 3D printing company nano dimensions (Nasdaq: NNDM).
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At the same time, Stratasys and US 3D printing company Desktop Metal, Inc. (NYSE: DM) announced that they have entered into a definitive agreement to merge into an all-stock transaction valued at $1.8 billion. If the merger is complete, Stratasys shareholders will own 59% of the combined company, while legacy Desktop Metal shareholders will own 41%.
The unsolicited offer for 3D Systems is $7.50 per share and $7.50 and 1.2507 newly issued shares of 3D Systems common stock for each Stratasys common stock. At current prices, that’s $17.92 per share and the company’s valuation is $1.21 billion — just under Nano Dimension’s offering, but it could go higher if 3D Systems’ share price rises. After rejecting bids for Nano Dimension, Stratasys says it will consider the 3D System bid. 3D Systems is already operating in Israel, having acquired Cimatron.
Stratasys, which is run by CEO Dr. Yoav Ziv, is engaged in industrial 3D printing of polymers. Nano Dimension, run by CEO Yoav Stern, has made three offers for Stratasys including its most recent hostile takeover offer offering directly $18 cash per share to shareholders.
Stratasys share price increased by 0.14% yesterday to $14.57, giving a market value of $996.61 million. The share price rose 7% in after-hours trading to $15.59, in anticipation of a bidding war.
Published by Globes, Israel business news – en.globes.co.il – on June 2, 2023.
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