Stratasys is discussing with 3D Systems the possibility of making a more advantageous offer.

Share this story

It looks like Stratasys (Nasdaq: SSYS), the 3D printer manufacturer, may be heading for a resolution to its ongoing battle of true business size supremacy. With a potential knockout punch being delivered by Nano Dimension (Nasdaq: NNDM), offering to purchase Stratasys, 3D Systems (NYSE: DDD) wasted no time in upping the ante and issuing an increased offer to acquire the company.

The battle between these two 3D printer giants has been brewing for quite some time, but the stakes were raised when NNDM offered to purchase Stratasys. After evaluating all available evidence, 3D Systems felt it could no longer stand on the sidelines and decided to move in and make a competitive offer.

Each company is hoping to take advantage of the synergies that could exist between them while also capitalizing on the expanding 3D printing industry as a whole. With their impressive technology, a merger between the two could lead to an unbeatable combination of intellectual property, engineering prowess, and access to 3D printing markets worldwide.

At this time, the details on 3D Systems’ official offer remain confidential, and we’ll have to wait and see how Stratasys responds. All signs point to a highly competitive and drawn-out battle.

Stratasys does have a few options, one of which would be to accept 3D Systems’ offer or to pursue a counteroffer. No matter the path chosen, the outcome of this merger could potentially have an effect on the entire 3D printing industry as a whole.

7/17/23 UPDATE

It looks like the waiting game is finally over. According to reports, Stratasys has accepted 3D Systems’ official offer and the merger has been finalized.

The terms of the deal were not disclosed, but Stratasys shareholders will be receiving a cash payment of $50 per share.

With the formal announcement came news that 3D Systems plans to capitalize on the new opportunities presented by the merger and rename the newly-formed company “3D Stratasys”.

With the conclusion of the merger, the 3D printing industry is in for some big changes. How these changes will influence the 3D printing sector as a whole remains to be seen. The cash that Stratasys’ shareholders will receive for their holdings will remain steady at $7.50 per share. But this time around, the number of shares shareholders will receive is increasing, this time to 1.5444 of the combined company. The total ownership of Stratasys will represent 44 percent of the post-merger business structure, along with $540 million in cash. All in all, the company’s shareholders will benefit from the new structure and stand to make a large return on their investments. 3D Systems has released their estimate of the value to be had in the proposed merger of Nano Dimension Ltd. and Stratasys. The figure is $24.07 per Stratasys share, which is only 7 cents above Nano’s most recent offer and a stunning 62% above the closing price of Stratasys one day before it disclosed its intentions to merge with Desktop Metal. In addition, the actual value of the deal, according to 3D Systems, is projected to be $28 per share based on the $100 million in expected cost synergies.

Investors will no doubt take this news into consideration as they weigh the merits of the proposed merger. The increased value of their Stratasys shares could be more than enough to sway them in favor of the deal. 3D Systems, whose stock is also partly tied to the success of both companies’ products, looks likely to benefit as well. All signs point to a win-win situation for everyone involved. 3D Systems Sweetens the Pot to Merge with Stratasys

3D Systems has upped the ante in an effort to close the all-stock merger agreement with Stratasys. Not only has the company sweetened the pot, but it has also put the merger agreement in escrow. All that Stratasys has to do in order to finalize the merger is pick up a pen and sign. Additionally, 3D Systems has agreed to pay all of the termination fees to Desktop Metal, shouldering any financial burden and removing any roadblock to the Stratasys merger.

The all-stock deal has some remarkable advantages for both companies. Firstly, it is not subject to any debt or equity financing. It also means that the issuing stock will be for a U.S. company, rather than an Israeli one. This broadens the capital markets base considerably, potentially providing greater access to funds by both parties involved in the merger.

The only question is whether Stratasys will take the bait and move forward. With so much potential in the merger, it is expected that Stratasys will reach an agreement. Only time will tell, but for now, 3D Systems has enticed a sweet deal. Welcome to 3D Systems! Thank you for joining us in our exploration to embrace the world of 3D printing.

What is 3D printing? It is a process of materializing objects through a digital design. Through this technology, designers, engineers, architects, and manufacturers are able to create prototypes, custom parts, and even entire products from 3D models.

At 3D Systems, we offer a full suite of 3D modeling services and products ranging from modeling software to specialized 3D printers. Our team is passionate about helping our customers meet their creative needs and making the most of their 3D printing projects.

We believe 3D printing technology has the potential to revolutionize the way we create. So let us explore its possibilities together. Sign up for our mailing list and get the latest updates on 3D Systems products and services.

Thank you for being part of our journey. Let’s make the world of 3D printing even better! If you’ve been following the merger of Desktop Metal and Stratasys, you’ll know that one of the conditions of the deal was the removal of “unusual terms”. But what exactly are these “unusual terms”? We may never know the full details, as the specifics of the contract aren’t being made public.

The mystery behind these “unusual terms” raises our curiosity and presents an intriguing question about the merger. How exactly did these terms come to be part of the agreement in the first place?

It’s hard to say for sure, but it’s possible that these terms were put in place to protect the interests of Desktop Metal and/or Stratasys. It could be that the terms are necessary for the smooth running of the new venture, or to safeguard specific information.

Whatever the purpose of the “unusual terms”, it’s clear that they’re being removed as part of the deal. This means that all parties involved are now on an even footing, and the new chapter between Desktop Metal and Stratasys can begin. 3D Systems and Stratasys, two of the largest players in the 3D printing industry, recently announced plans to merge, providing shareholders of both companies with exceptional value, certainty and transparency.

Dr. Jeffrey Graves, President and CEO of 3D Systems, was quick to emphasize the value of this offer. “We have continued to pursue a friendly combination with Stratasys in the interest of maximizing value for our shareholders. Numerous large Stratasys shareholders have expressed agreement that our proposed combination is the right choice for all parties.”

The proposed merger also demonstrates 3D Systems’ commitment to shareholder value. The company has agreed to shoulder the termination fee that Desktop Metal would have collected had the Stratasys merger not gone through – a clear illustration of commitment to shareholders.

Though it is too early to say how this merger will play out, the potential synergies between 3D Systems and Stratasys could revolutionize the 3D printing industry. Watch this space for updates as the situation progresses. The team at 3D Systems has been actively seeking a deal with Stratasys to create a “game changing” alliance in the additive manufacturing industry. They have recently taken further steps to strengthen their proposal and enhance the value and certainty of their offer.

The proposal made to Stratasys includes a complete merger agreement, with all existing terms that would ensure a successful and mutually beneficial transaction. The team at 3D Systems expressed their confidence that this improved proposal should be considered a “superior proposal” over any other that has been presented to Stratasys previously.

At 3D Systems, they are committed to constructing a beneficial deal and hope for an amicable outcome. Their hope is to mutually align with the Stratasys board to create a transaction that will benefit all stakeholders – not just investors, but employees and customers as well.

With this decision, 3D Systems wants to minimize any questions as to whether their offer would constitute a superior proposal. Most importantly, all parties should benefit from this newly improved proposal. Troy Jensen, a Senior Research Analyst at Lake Street Capital Markets, offered his opinion on the Nano Dimension offer, which he discussed in various terms. Jensen said that potential Stratasys shareholders should take the Nano Dimension offer, barring a better offer from 3D Systems. He rated the Desktop deal as “ugly,” the Nano offer as “bad,” and a merger with 3D Systems as “good.” He commented that a 3D Systems deal would be the best option for shareholders, since it could offer greater returns in the future. Ultimately, Jensen concluded that 3D Systems should improve their offer in order to secure the decision-making process of Stratasys shareholders.

In sum, Jensen suggested that 3D Systems should better their offer in order for Stratasys shareholders to select them over Nano Dimension. He believes that a merger with 3D Systems would be best for shareholders if they were able to provide a convincing proposal. Until then, he recommends that those investing in Stratasys accept Nano Dimension’s offer. 3D Systems and Stratasys could make a powerful pair when it comes to 3D printing. As an early investor in Stratasys, it’s always been a favorite of ours. New product cycles, a strong valuation, and a path to profitability have all helped make it a solid pick.

Now the question turns to whether the company needs scale to get to the next level of success. 3D Systems merging with Stratasys would provide the size needed to achieve that profitability.

Advocates of the merger point to the product overlap between the two businesses, and how the combination of their technology could create an efficient and unrivalled 3D printing force.

From a financial perspective, the merger would bring major cost savings in R&D and operations, as well as create an opportunity for greater economies of scale.

But even greater than the financial opportunities would be the customer base both companies could harness with such a merger– virtual monopolies created in key markets.

At the same time, investors in either 3D Systems or Stratasys could gain from increased efficiency, lowered costs, and a more diverse product set.

While we hope this would not be the end of Stratasys’ independence, we are still open to the idea of the companies merging. Scale could bring great things to 3D printing, and a 3D Systems/Stratasys combination would be one way to get there. With recent talks between 3D Systems and Stratasys, one must ask what will become of the other companies involved? Nano Dimension currently owns 14 percent of Stratasys and has potentially threatened a total board takeover with its members, including President Zivi Nedivi, a former collaborator of Stratasys’ Chairman Dov Ofer. If Stratasys and 3D Systems proceeded to a merger, Nano Dimension’s ownership would become watered down, yet they wouldn’t let go of such a valuable asset easily. Unless some compromise is reached between Stratasys and Nano Dimension, a merger agreement between Stratasys and 3D Systems might not come to fruition. A merger of all three businesses is being considered, according to an unnamed banker involved in the negotiations. Nano Dimension has indicated that it is open to the idea of combining the three companies, but at this time 3D Systems has not indicated any interest in such an arrangement. The Financial Times has reported that all parties involved in the negotiations have expressed support for a potential merger.

While it is too early to speculate about the exact details of this potential deal, it may represent an opportunity for innovation and growth in the 3D printing industry. A combination of all three businesses would undoubtedly lead to the introduction of new products and services. Additionally, such a merger would present opportunities to expand into new markets, increase efficiencies, and streamline costs by avoiding duplication of resources.

Despite the potential benefits of a merger, many are skeptical. There are formidable antitrust issues to consider, and many worry that the merged entity would become a monopoly in the 3D printing industry. Additionally, such a merger would undoubtedly lead to massive job losses.

At this time, the status of this potential merger remains unclear. However, the ongoing negotiations between 3D Systems, Nano Dimension, and Essentium, suggest that we may see some consolidation in the 3D printing sector. With the recent success of Desktop Metal’s initial public offering (IPO), the 3D printing giant has positioned itself for bigger and brighter [opportunities](https://blog.mystrada.com/3-ways-3d- printing-is-revolutionizing-product-development/). That being said, the need for the company to find some form of support is critical in order to keep their momentum going.

One option that Desktop Metal has is to sell itself to a larger company. This could be a great way for the firm to leverage the resources of a bigger company, allowing them to grow at an even faster pace than before. With this kind of an acquisition, Desktop Metal would be able to access the resources needed to start the roll up of a number of existing 3D printing products, services, and software on the current market.

Another possibility for the firm is to pursue a sale to a manufacturer that is outside of the current list of companies being speculated. This could be a great way for Desktop Metal to find the right kind of partner to help improve their product and make it more attractive to potential customers.

Finally, Desktop Metal could pursue a complete buyout by an investor or group of investors. This could be a great opportunity for the firm to avoid having to compete with others in the market, allowing them to focus all their resources on perfecting their product for next-level success.

No matter what option Desktop Metal goes with, support will be critical in order for their roll up strategy to reap the rewards. By doing their research and exploring all the possible routes, the company has the opportunity to create a secure future for itself backed by a strong partner. Ric Fulop’s A123 – Sold to Asia, Could Benefit Desktop

Ric Fulop’s battery business, A123, was bought by the Chinese car parts company Wanxiang, indicating that he may have access to Asian investors who would be interested in supporting his new AM venture.

The Chinese additive manufacturing (AM) sector is booming with 30 percent annual growth according to Bright Laser Technologies, making it a lucrative target for those looking to access the North American and European markets.

Although the metal binder jet market is still in its early stages and has yet to reach the heights of laser powder bed fusion, the potential returns on this type of investment are high.

Desktop, Ric Fulop’s latest venture, looks like it could particularly benefit from these kinds of East-West partnerships. With the strategic capital support of Chinese investors, Desktop may be able to benefit from the rapidly growing AM possibilities in the East. A decade ago, XYZprinting (a subsidiary of the Taiwanese contract manufacturer New Kinpo Group) made a mark on the desktop market and was then seen displaying a variety of industrial machines before shifting to focus on selective laser sintering (SLS). Now, after selling off its SLS division to Nexa3D, it appears that the company might be staring down the opportunity to reenter the industrial machine market. It’s possible they could purchase Desktop Metal if the merger with Stratasys fails, granting XYZ a worthwhile IP portfolio and more. Stratasys’ Board of Directors have officially announced they would start discussions to merge with 3D Systems. According to the merger agreement, they believe the recent offer is a “Superior Proposal” and need to open talks with the other company. There is still no assurance that the conversations will result in a merger, however.

This knowledge has been met with much anticipation from analysts, investors, and 3D printing enthusiasts alike. It is unknown what the results of this potential merger would be, or how the companies’ respective technology, marketing, and research departments would be impacted, but any agreement would be sure to have ramifications throughout the industry. For example, Stratasys has focused on enterprise-level 3D printing solutions, and 3D Systems is stronger in direct and consumer-based applications.

No further details on the progress of discussions have been provided yet, so the 3D printing community will have to wait and find out if a merger is reached in the future. 1. The Nano tender offer significantly undervalues Stratasys’ true underlying value;
2. By offering an uninformed lower premium, the proposed transaction would leave Stratasys shareholders with a smaller return of capital;
3. The proposed transaction ignores the long-term potential of Stratasys’ technology and commercial opportunities; and
4. The proposed transaction yields a substantial discount to the comparably-sized transactions in Stratasys’ peer group.

Stratasys urges investors to reject Nano’s tender offer and submit a Notice of Objection to Nano Dimension. The Board believes that the most beneficial outcome for Stratasys’ shareholders would be if Nano Dimension’s tender offer is rejected and Nano Dimension withdrew the offer. The Board also encouraged Stratasys’ shareholders to consult their advisors in making a decision related to the tender offer. The Stratasys Board of Directors recently made a statement to current shareholders: if you are not wishing to tender your shares as part of the partial takeover by Nano, you should still file a notice of objection. Their reason for this is that filing such an objection could ultimately cause the tendering program to be terminated. In addition, they are recommending that shareholders to vote for the existing Stratasys Board of Directors, rather than replacing it with Nano’s Board. The Board believes that Nano could potentially walk away from the partial tender offer while still taking over the company.

The Board of Directors mentioned that their goal is to protect the interests of the existing shareholders. They believe that the partial tender offer presents an inadequate value for Stratasys and that a better and fairer option would benefit all shareholders.

Concerned shareholders should consider this opinion of the Board of Directors and decide for themselves if they should file a notice of objection and vote to re-elect the existing Stratasys Board. They may also want to seek out professional legal advice before making any decisions. Troy Jensen, an analyst from Lake Street Capital, published a report critically analyzing the current trends of the market. In his report, he argued that understanding the shape of the market is essential to success.

“The market will toss a lot of money around for a while,” Jensen said. “It pays to be alert and stay informed. The smartest investors will keep their eyes open to grab the best opportunities when they arise.”

He further encouraged investors to accept risks, stressing his belief that the market would be uncertain in the near future.

“Investors should embrace volatility,” Jensen added. “Without embracing risk, investors will be unable to reap the greatest gains available.”

Jensen concluded his report by saying that he believes the market is headed in a positive direction and there is much to look forward to for those who are willing to take risks. The proposed combination of 3D Systems and Stratasys is a huge step forward for the additive manufacturing industry. The new synergy will create significant scale and industry leading profitability. 3D Systems has made a pivot into a pure-play additive manufacturing company and this union with Stratasys should make it a major player in the space.

CEO Jeff Graves and the management team at 3D Systems deserve a great deal of commendation for making this move and for their commitment to properly integrating Stratasys into their operations. The future looks bright for this combination and we wish them success. We’re standing strong on our Buy recommendation and $12 price target on DDD shares. This valuation represents a 2.5x enterprise value-to-sales multiple when applied to our current 2024 revenue end point of $605 million. It’s important to note, however, that these figures are based on DDD as a separate entity and should be revised if the future Stratasys merger comes into play. For months, Stratasys had been touting its pending merger with Desktop Metal across its Next Generation AM website. But then, just before the vote in August to replace the existing Stratasys directors with Nano Dimension representatives, the site shifted its focus to protecting the company against Nano Dimension. Now, the website has almost completely dropped all references to Desktop Metal, and the Desktop logo has been removed from the top of the page.

Stratasys’s current campaign against Nano Dimension can be seen across all channels, including the website, emails, and social media outlets. Its message is clear: Protect the company against Nano Dimension’s forward consolidation of the industry, and preserve its commitment to innovation, quality, and customer satisfaction.

Consumers can still find more information about the Desktop Metal merger on the website, but now, the emphasis is on protecting Stratasys’s stronghold on the additive manufacturing industry. By shifting its marketing strategy, Stratasys is showing that it’s prepared to fight in order to remain one of the industry’s top players. In a nutshell, Nano activity may complicate a potential merger between Stratasys and 3D Systems. Before any decision is made, the Stratasys Board will carefully consider the advantages and disadvantages of such a deal and whether it is more beneficial than an equivalent merger with Desktop Metal. If the Board does decide to pursue a combination with 3D Systems, they might have to honor an upcoming vote regarding the Board swap, and this might complicate matters by forcing the consideration of a three-way merger. In the rapidly evolving 3D printing industry, it’s essential to stay informed about the latest news. With the rise of 3D printing technology, it can be hard to keep up with the trends. To stay in the know, you need to monitor the 3D printing news and learn about the latest advancements.

Fortunately, there are plenty of resources to help you do just that. Signing up for newsletters, keeping an eye on press releases, and engaging with 3D printing forums are great ways to stay up-to-date on the latest developments in the industry. Not only will this help you be at the cutting edge of 3D printing technology, but you might also be able to take advantage of exclusive offers from vendors.

Additionally, attending conferences and events can give you the opportunity to talk to like-minded people in the industry and learn more about the newest trends. Keep an eye out for industry events in your area and make sure to make use of local and online 3D printing communities.

Staying up-to-date on 3D printing technology is an important task for anyone interested in the industry. By staying informed about the latest news, you can gain a better understanding of the industry and make sure to take advantage of exclusive offers from vendors. Keep your finger on the pulse of 3D printing news and take advantage of all the resources available to stay informed!


Share this story

Leave a Reply

Your email address will not be published. Required fields are marked *