The battle between 3-D printing companies Nano Dimension Ltd. and Stratasys Ltd. entered a new phase on Thursday, with the former launching a tender offer for Stratasys just moments after the company unveiled a deal with Desktop Metal Inc.
and Desktop Metal
said they had agreed to combine in an all-stock deal valued at $1.8 billion.
Then Israel-based Nano Dimension
launched an all-cash tender offer at $18 to purchase shares that would boost its stake in Minneapolis-based Stratasys to 53% to 55%.
Nano Dimension offered exactly that sum on March 9 when it made its first offer for the polymer 3-D printing company and disclosed that it was Stratasys’ largest shareholder with about 14.5% of the outstanding shares.
After the Stratasys board rejected that offer, Nano Dimension sweetened it to $20.05 a share, which the board said “continues to substantially undervalue Stratasys in light of its standalone prospects and is not in the best interests of Stratasys and its shareholders,” as Dow Jones Newswires reported at the time.
On Thursday, Nano Dimension said it was still determined to create a market leader in the additive manufacturing space.
“As we had previously indicated to the Stratasys Board, given their continued refusal to engage in negotiations, we have decided to present our offer directly to Stratasys’ shareholders,” said Yoav Stern, Nano Dimension’s chairman and CEO. “We believe our offer delivers certain all-cash value to Stratasys’ shareholders at a premium in excess of what Stratasys can deliver to its shareholders.”
Stratasys shareholders have until June 26 to tender their shares into the offer.
Stratasys and Burlington, Mass.-based Desktop Metal, meanwhile, said their planned combination would create a company that would target $1.1 billion in 2025 revenue.
“The combination of these two great companies marks a turning point in driving the next phase of additive manufacturing for mass production,” Ric Fulop, chief executive of Burlington, Mass.-based Desktop Metal, said in a statement. The two companies are active in the aerospace, automotive, consumer products, healthcare and dental sectors.
Under the terms of the board-approved deal, Desktop Metal shareholders would receive 0.123 shares of Stratasys for each share owned, equal to about $1.88 per share.
Once the deal closes — which was expected to happen in the fourth quarter — Stratasys shareholders would own 59% of the new company, while Desktop shareholders would own the remaining 41%.
Both companies reaffirmed guidance for 2023 offered with their first-quarter earnings.
All three stocks moved lower in Thursday trade. Stratasys was down 2.5%. Desktop Metal was down 4.9% and Nano Dimension was down 0.8%.