2023-07-01 16:38:53
Donerail Group, which has a 2.3% stake in Stratasys, is calling on the company to negotiate with 3D Systems on the offer that is now on the table. Meanwhile, Nano Dimension raised the offer this week. However, Stratasys management insists on merging with Desktop Metal.
The Stratasys acquisition saga continues. That is not good for a group, because it undoubtedly weakens the attention for current business and may prefer to wait until there is clarity.
Peugeot has the 3DFashion technologie van Stratasys, which allows you to print directly on textile, used for the concept car Inception. This interior sets the tone for the French carmaker’s future electric models.
Inflated image full of challenges
The Donerail Group, which owns 2.3% of Stratasys shares, wants the company to immediately consider 3D Systems’ (DDD)’s proposed offer to be reasonable and ultimately a superior proposal, the activist investor wrote in a letter Thursday to the board of Stratasys. “Instead of having an inflated view of an execution story full of challenges,” Donerail Group Managing Partner William Wyatt writes in the letter. “We think the right answer is clear.” Merging with Desktop Metal is too risky, according to this shareholder.
New bid 3D Systems
This would be apparent, among other things, from the 10% drop in share price after the announcement of the plans to merge with Desktop Metal. The offer from 3D Systems is 27% above the price of last Monday. “We do not believe that the board can reject this any longer: a transaction with 3D Systems is significantly more attractive than the current alternatives.” The deal would convert each share of Stratasys common stock into $7.50 in cash and 1.3223 new shares of 3D Systems common stock to be issued. This translates to $20.35 per share.
Nano Dimension also agree to a partial takeover
Nano Dimension continues to believe in the acquisition of Stratasys.
Nano Dimension raises bid again
One of the alternatives is Nano Dimension’s new offer. The Israelis, who reported record sales of nearly $15 million last week, are willing to pay $20.05 in cash for each share of Stratasys. In May, it was offering $18.00 per share. The new offer runs until July 24, but Nano Dimension has already indicated that it will also agree if not all shareholders register their documents. It hopes to take between 31.9 and 36.9 percent of the shares out of the market. Together with the stake in Stratasys that it has already built up, that would amount to a maximum of 51 percent. Stratasys has responded to this by rejecting the offer. It would not be in the interest of shareholders and would undervalue the company. Last Friday, after an initial rally, the share price fell 1 percent to $17.76. Apparently the market has no confidence in the new offer.
Faster growth after merger with Desktop Metal
Meanwhile, Stratasys management insists on merging with Desktop Metal. The combination would grow at a rate of 19 percent each year through 2027. Stratasys as a standalone company without Desktop Metal is growing at 14 percent per year during the same period, according to the board. In addition, it is expected to save $100 million in costs by 2025.
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