2023-09-28 19:20:43
The merger or acquisition of Desktop Metal by Stratasys has been canceled. Stratasys withdrew the proposal when a preliminary count showed that shareholders did not support the plans. Destop Metal now continues independently with $127.6 million in cash.
Stratasys management has not been able to get shareholders behind the merger plans. In recent days, major shareholder Nano Dimension, which itself has been in the race to take over Stratasys, announced that it would vote once morest the proposal. Another major shareholder also announced last week that she would vote once morest. A preliminary count made it clear that there was no majority in favor of the plans.
Focus on shareholder value
“We have decided to conduct a comprehensive and thorough review of all available strategic alternatives,” said Dov Ofer, Chairman of the Stratasys Board of Directors. “We enter this review as a leader in the additive manufacturing space and will continue to execute on our strategy, driven by innovation and profitable growth, which has led Stratasys to surpass the competition. Importantly, we remain focused on our mission to deliver value to customers and take the right actions to maximize value for all Stratasys shareholders.” For the time being, this statement remains the same. Stratasys does not feel called upon to explain further developments.
Disappointment at Desktop Metal
Desktop Metal’s shareholders had voted in favor of the plans by a majority. Ric Fulop, CEO of Desktop Metal, is disappointed in the attitude of Stratasys shareholders. He remains confident in Desktop Metal’s direction, aimed at reducing operating costs while increasing revenues. “Our plan to reduce costs and generate revenue remains on track as customers continue to switch to our AM 2.0 technologies for mass production of metal, polymer, ceramics and health care products.” Desktop Metal can soon count on compensation from Stratasys now that the merger will not go ahead. The group still had $127.6 million in cash at the middle of this year. There is also the break-up fee.
3D Systems continues to hope
Meanwhile, 3D Systems has rejoined the fray. Except that it is shareholders of Stratasys has actively advised once morest the merger plans with Desktop Metal, 3D Systems has indicated that Stratasys management can accept 3D Systems’ offer until October 5. The big question is whether that will happen. In any case, Stratasys has extended the poison pill that previously activated it.
The stock prices of both groups rose today on the news that the merger with Desktop Metal has failed. The price of Desktop Metal is falling.
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