US 3D printing company 3D Systems Corp. (NYSE: DDD) has launched a takeover bid for Israeli 3D printing company Stratasys (Nasdaq: SSYS). The Israeli company’s shareholders now face a complicated choice. Stratasys management has already received and rejected several unsolicited takeover bids from fellow Israeli 3D printing company Nano Dimension (Nasdaq: NNDM).
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At the same time, last week Stratasys and US 3D printing company Desktop Metal, Inc. (NYSE: DM) announced that they have entered into a definitive agreement to combine in an all-stock deal valued at $1.8 billion. If the merger is completed Stratasys shareholders will hold 59% of the combined company, and legacy Desktop Metal stockholders will hold 41%.
3D Systems unsolicited bid is at $7.50 per share and $7.50 and 1.2507 newly issued shares of common stock of 3D Systems per ordinary share of Stratasys. At current prices this amounts to $17.92 per share and a company valuation of $1.21 billion – a little below Nano Dimension’s offer but it could increase if 3D Systems share price rises. Having rejected Nano Dimension’s offers, Stratasys says it will consider 3D System’s offer. 3D Systems already operates in Israel, having acquired Cimatron.
Stratasys, managed by CEO Dr. Yoav Zeif, is engaged in industrial 3D printing of polymers. Nano Dimension, managed by CEO Yoav Stern, has made three offers for Stratasys including its most recent hostile takeover bid directly offering $18 cash per share to shareholders.
Stratasys share price rose 0.14% yesterday to $14.57, giving a market cap of $996.61 million. The share price rose 7% in afterhours 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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