According to a new filing, Stratasys is progressing with the merger involving Desktop Metal.

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The Long-Awaited Merger: Stratasys and 3D Systems

It’s been a topic of much anticipation and speculation – the merger between two giants in the 3D printing industry, Stratasys and 3D Systems. After months of negotiations and discussions, shareholders of both companies are now preparing to cast their votes on the proposed merger.

A joint proxy statement filed by Stratasys with the SEC has set a date for a “Desktop Metal special meeting,” where the proposed merger between Stratasys and Desktop Metal (a subsidiary of 3D Systems) will be voted on by shareholders. According to the letter accompanying the statement, the merger cannot be completed unless both sets of shareholders approve the respective merger agreements.

Yoav Zeif, Chief Executive Officer of Stratasys Ltd., and Ric Fulop, CEO of Desktop Metal, have expressed their optimism about the merger and its potential to reshape the 3D printing industry. They believe that the combined strengths of Stratasys and Desktop Metal will drive innovation and offer enhanced solutions to customers worldwide.

In order for the merger to proceed, both companies’ shareholders must vote in favor of the merger proposals. Stratasys has recommended that its shareholders vote “FOR” each of the proposals to be considered at the Stratasys extraordinary general meeting. Similarly, Desktop Metal will hold a special meeting for its stockholders to consider and vote on the merger agreement and related proposals.

The joint proxy statement filed with the SEC provides details about the exchange ratio for the merger. Each share of Desktop Metal’s Class A common stock will be automatically converted into 0.123 ordinary shares of Stratasys, a fixed exchange ratio that is not subject to market price fluctuations. Based on the closing price of Stratasys shares on Nasdaq on May 24, 2023, the value of the merger consideration for Desktop Metal stockholders was approximately $1.83 per share.

Post-merger, Desktop Metal stockholders will hold approximately 41% of the combined company’s shares, while Stratasys shareholders will hold about 59%. The CEOs of both companies are urging shareholders to carefully review the joint proxy statement/prospectus, especially the “Risk Factors” section, to fully understand the implications of the merger.

Both Stratasys and Desktop Metal have scheduled their respective meetings for shareholders to vote on the merger. The Stratasys extraordinary general meeting of shareholders, or Stratasys EGM, will be held on Thursday, September 28, 2023. The Desktop Metal special meeting will also take place on the same day.

It is important to note that the joint proxy statement filed with the SEC is subject to change and is not marked as complete. Shareholders are advised to stay updated on any potential changes or amendments.

As the anticipated merger between Stratasys and 3D Systems draws closer, stakeholders in the 3D printing industry eagerly await the outcome. The merger has the potential to redefine the industry and pave the way for new advancements in additive manufacturing. Only time will tell the fate of this groundbreaking union.

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