SSY - Stratasys agrees to buy Desktop Metals in $1.8 billion all-stock deal

2023-05-25 07:16:27 ET

Stratasys ( SSY ) confirmed an agreement to acquire 3D printer company Desktop Metal ( NYSE: DM ) in an all-stock deal valued at about $1.8 billion. Desktop Metals rose 8.6% in premarket trading, while Stratasys gained 2.6%.

Under the terms of the agreement, Desktop Metal ( DM ) holders will receive 0.123 shares of Stratasys ( SSYS ) for each Desktop Metal share, according to a statement on Thursday. This represents a $1.88 per Desktop Metal  Class A share, a 7.4% premium to DM's closing price on Wednesday.

Stratasys ( SSYS ) shareholders will own approximately 59% of the combined company, and legacy Desktop Metal ( DM ) stockholders will own approximately 41% of the combined company. The deal is expected to close in Q4, subject to the approval of DM and SSYS holders. Stratasys and Desktop Metal are expected to generate $1.1 billion in 2025 revenue.

The Desktop Metals deal comes after Stratasys ( SSYS ) repeatedly rejected takeover offers from rival Nano Dimension (NASDAQ: NNDM ), including a $20.05 a share bid last month , saying the proposals "substantially" undervalued the company.

Separately, on Thursday, Nano Dimension ( NNDM ) said it commenced a special tender offer to purchase between 38.8% and 40.8% of the outstanding ordinary shares of Stratasys ( SSYS ) for $18.00 per share in cash, according to a statement.

In connection with the Desktop Metal ( DM ) acquisition, Stratasys ( SSYS ) extended its shareholder rights plan, and Desktop Metals ( DM ) said it plans to adopt a limited duration shareholder rights plan.

The news of the transaction was reported on Wednesday by Bloomberg.

Desktop Metals ( DM ) has short interest of 29%.

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