After its revised proposal valued at $27 per share, Stratasys ends negotiations with 3D Systems.

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Title: Evaluating the Risks in 3D Systems’ Latest Proposal

Introduction

Recently, 3D Systems made headlines with its improved proposal to acquire Stratasys, a move that could potentially reshape the 3D printing landscape. However, upon closer inspection, it becomes apparent that this proposal comes with a set of significant risks. In this article, we will delve into the details of the proposal and explore the potential pitfalls it presents.

The Revised Proposal

On September 6, 2023, 3D Systems submitted an improved proposal to Stratasys, offering to convert each Stratasys share into $7.00 in cash and ownership of 46% of the combined company’s aggregate shares. According to 3D Systems, this offer was valued at more than $27 per share, inclusive of synergies, for Stratasys shareholders.

Stratasys’ Response

However, on September 12, the Stratasys Board unanimously concluded that the revised proposal did not constitute a ‘superior proposal’ to the previously planned merger with Desktop Metal. The board terminated discussions with 3D Systems, stating that the offer represented a premium of only 3% compared to the unaffected closing stock price of Stratasys ordinary shares as of May 24, 2023.

Undervaluation and Risks

Stratasys’ board of directors, after conducting a thorough due diligence review of 3D Systems, determined that the revised proposal still significantly undervalued the company. The board reaffirmed its support for the pending combination with Desktop Metal, emphasizing that the latest offer failed to reflect Stratasys’ true worth.

Moreover, the most recent proposal from 3D Systems carries several significant risks. However, due to confidentiality limitations, specific details regarding these risks were not disclosed in the press release. Nevertheless, it is crucial for shareholders to be aware of these potential hazards before making any decisions.

Conclusion

While 3D Systems’ revised proposal generated some buzz, it is evident that it fell short of both Stratasys’ expectations and the board’s assessment of the company’s true value. The risks associated with the proposal further compounded the board’s decision to terminate talks and reaffirm its support for the planned merger with Desktop Metal.

As the 3D printing industry continues to evolve, it is crucial for companies to navigate partnerships and acquisitions carefully. Stratasys’ decision to prioritize its shareholders’ interests and proceed cautiously with their proposed merger sends a powerful message to the market.

In the end, the story remains the same: Stratasys has chosen to stick with their trusted partner, Desktop Metal, and continues to forge ahead with their strategic plan. Only time will tell how this decision will shape the future of 3D printing.

A recent announcement from Stratasys has shed light on some material issues that have arisen in relation to a proposed transaction with 3D Systems. After thorough review and consultation with external financial and legal advisors, the Stratasys Board has concluded that the revised proposal put forth by 3D Systems does not meet the criteria for a “Superior Proposal,” as outlined in Stratasys’ merger agreement with Desktop Metal. As a result, Stratasys has decided to terminate discussions with 3D Systems.

In response to a press release issued by 3D Systems on September 11, 2023, Stratasys would like to provide some clarification. The Stratasys Board has unanimously reaffirmed its approval, recommendation, and belief in the advisability of the transaction with Desktop Metal. As previously announced on August 23, 2023, an Extraordinary General Meeting of Shareholders will be held by Stratasys on Thursday, September 28, 2023. During this meeting, shareholders will have the opportunity to vote on the approval of certain matters related to the Desktop Metal merger agreement. Additionally, Desktop Metal shareholders will also have their own separate meeting on the same date to vote on the merger.

It is important to note that this decision by Stratasys was not made lightly. The company has thoroughly evaluated the options and weighed the potential benefits and drawbacks of each proposal. After careful consideration, it has become clear that the best path forward for Stratasys lies in the transaction with Desktop Metal.

As the additive manufacturing industry continues to evolve and grow, it is crucial for companies like Stratasys to make informed decisions that align with their long-term strategies and objectives. By staying focused on these goals and engaging in open and transparent discussions, the industry as a whole can thrive and drive further innovation in 3D printing and additive manufacturing.

If you’re interested in learning more about this topic or want to join the conversation, I encourage you to join the TCT Additive Manufacturing Network. Additionally, you can also get a free print subscription to TCT Magazine, a valuable resource for staying up to date with the latest developments in the industry. And for those looking to connect with industry professionals and showcase their innovations, consider exhibiting at TCT 3Sixty, the UK’s definitive and most influential 3D printing and additive manufacturing event.

In conclusion, Stratasys remains committed to pursuing its strategic merger with Desktop Metal, as it believes this transaction will position the company for continued success in the evolving additive manufacturing landscape.

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