Covestro AG materials
3D Systems confirmed its intention to acquire Israeli 3D printer manufacturer Stratasys in a cash and stock merger that would convert each Stratasys share into $7.50 in cash and 1.2507 newly issued shares of 3D Systems common stock. 3D Systems declared that should the merger go forward it would create an “additive manufacturing industry leader,” with Stratasys shareholders owning 40% of the combined company and receiving approximately $540 million in cash. 3D Systems delivered this proposal to the Stratasys Board on May 30, 2023.
Stratasys was already the object another takeover bid. In March, Nano Dimension, another Israeli company in 3D printed electronics, made a $1.1 billion bid to but the firm. At the time, Nano Dimension, already the largest investor in the company owing roughly 14.5% of Stratasys’ outstanding shares, offered a 28% premium on Stratasys shares at a price of $18 per share.
And in May, Startasys itself announced plans to try and takeover another company, the American 3D printing company Desktop Metal Inc. According to a report by Bloomberg, if the acquisition takes place the combined new company would be worth $1.8 billion. The proposed deal is said to be a stock swap.
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3D Systems boasts that it launched the 3D printing industry in 1986 and that the firm’s “broad portfolio of hardware, software, and material solutions spans from plastics to metals, and is backed by industry-specific engineering expertise housed in our Applications Innovation Group.”
Stratasys offers 3D printing solutions for industries such as aerospace, automotive, consumer products and healthcare. Through smart and connected 3D printers, polymer materials, a software ecosystem, and parts on demand, Stratasys boasts that its solutions deliver “competitive advantages at every stage in the product value chain.”
“The combination of 3D Systems and Stratasys is simply the best outcome for the shareholders of both companies,” said 3D Systems’ President and CEO, Dr. Jeffrey Graves. “We feel strongly that now is the time for all parties to recognize the overwhelming logic of our two businesses coming together. We are in a unique position to move with confidence and speed and we encourage the Stratasys Board of Directors to engage with our proposal and make this combination a reality for the benefit of the shareholders, employees and customers of both companies.”
