Stratasys and 3D Systems, two giants in the 3D printing industry, have been caught in an interesting merger saga. It all began when Stratasys announced a merger with Desktop Metal, which caught the attention of Nano Dimension. Surprisingly, Nano Dimension made unsolicited takeover bids for Stratasys, even though it was a much smaller company. Stratasys rejected these bids, but it brought attention to its value in the market.
Not long after, 3D Systems entered the picture and made their own bids for Stratasys. These bids were also rejected, until a month ago when Stratasys considered a bid from 3D Systems. It was expected that negotiations were taking place behind the scenes, but both companies have been quiet since then.
The proposed merger between Stratasys and 3D Systems generated a lot of interest in the 3D printing world. The combined entity would have dominated the market with the largest sales and distribution network, numerous patents, and significant resources. The estimated annual savings from the merger were valued at over US$100M, more than the value of many 3D printing companies.
However, yesterday’s press release from 3D Systems confirmed that Stratasys had rejected their latest bid. This rejection was not surprising, as Stratasys’ value has soared during this whole corporate saga. The tables have turned, with Stratasys now at the top of the leaderboard and 3D Systems in fourth place.
The shifting stock values made 3D Systems’ bid less attractive, as their shares were valued lower. This likely influenced Stratasys’ decision to reject the offer. But 3D Systems is not giving up; they plan to deliver a revised proposal to Stratasys, valuing it at around US$27 per share.
However, 3D Systems also mentioned that Stratasys’ board of directors is not interested in any further discussions or proposals from them. Stratasys continues to support the Desktop Metal merger as its preferred alternative. This statement from 3D Systems’ CEO, Jeffrey Graves, criticizes Stratasys for constantly rejecting offers and proceeding with a merger that he believes is destroying value.
Interestingly, 3D Systems’ value has dropped during this period, while Stratasys’ valuation has significantly risen. Stratasys is now worth 36% more than 3D Systems, a complete reversal from six months ago when 3D Systems was worth 52% more.
It remains to be seen how Stratasys will respond to the new proposal from 3D Systems. Given their track record, it is likely that they will reject it as well. The future of these two companies and the potential merger hangs in the balance as they navigate this ongoing saga.
“Why did the 3D printer go to therapy? Because it had too many layers of unresolved issues!”
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