2023-07-31 19:34:28
Will the decision on the future of Stratasys be made this month? 3D Systems has become more enthusiastic following the first due diligence. Stratasys management, meanwhile, complains that 3D Systems has not yet released detailed information in the due diligence investigation. And in the meantime, the CEO of Nano Dimension has thrown in the towel.
Nano Dimension withdraws offer because it receives too little support
Poison pill remains
Nano Dimension wanted to send some of the Stratasys board home on August 8, when Stratasys has a shareholder meeting. It wanted its own candidates in that seat, who would then sweep the poison pill that Stratasys wants to use off the table. “Most Stratasys investors have made it clear to us that the “poison pill” makes offering their stock too risky, despite our superior offer of $25 all-cash per share. The position of the Stratasys board makes it clear that the poison pill remains in effect and will continue to prevent shareholders from tendering their shares,” said Yoav Stern, CEO of Nano Dimension.
There are other takeovers in a fragmented AM landscape
Because the Israeli Court will not rule on the case until late this fall, Stern has decided to withdraw the $25 offer. Nano Dimension will consider what to do with the 14.5% stake in Stratasys. Selling the shares is one of the options. The money will be invested in other acquisitions. “We see important alternatives in a highly fragmented landscape,” says Stern. He thinks he can maintain the growth of 50% in the past year.
3D Systems of Desktop Metal?
So that leaves two scenarios: the original merger with Desktop Metal or the one with 3D Systems. A few days ago, the latter group announced that it would be ready with its competitor’s due diligence on August 4. Both management teams have discussed possible synergies several times since 3D Systems made the offer. On this basis, 3D Systems raises expectations with regard to the synergy benefits. Instead of $100 million as previously expected, it is now thought that even $110 million might be saved if the two companies merge.
3D Systems wants to accelerate
“The value of this combination is clear. It is now our job to act quickly to realize that value,” said 3D Systems CEO Jeffrey Graves. He wants to speed up the mutual due diligence investigation. August 4 is the target date to complete all interviews and investigations.
Critique of Stratasys board
The board of Stratasys, which has long insisted on the merger with Desktop Metal, seems to think otherwise. In a post, Stratasys responds by pointing out that it has repeatedly asked 3D Systems to share the same information as Stratasys did. It also wants insight into any negative consequences of a merger. While 3D Systems has provided an analysis of cost synergies, it is only on a global level and critical details are missing to support their claims Stratasys reports in an official response. If 3D Systems is serious regarding a merger with Stratasys, then it will be transparent and cooperative and will not cause confusion with public statesmen. Finally, the Stratasys board points out that it has never decided that 3D Systems’ offer is superior to the plan to merge with Desktop Metal.
August 8 finds the annual general shareholder meeting of Stratasys place. Then the Q2 results will also be announced. Will there be clarity or will one of the parties still conjure up a rabbit out of a hat?
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