3D Systems has said it welcomes Stratasys decision to explore strategic alternatives after its proposed merger with Desktop Metal failed to generate sufficient shareholder approval.
Stratasys announced earlier this week that it had terminated the merger agreement with Desktop Metal - with Desktop Metal suggesting it will move forward as an independent company, and 3D Systems reiterating its desire to merge with Stratasys instead.
3D Systems has an offer on the table (which it believes to be worth up to 27 USD per share) and is awaiting Stratasys' signatures to ratify the deal before it expires on October 5th, 2023. The Stratasys Board, however, has already rejected this deal - though that was prior to the shareholder vote on its proposed Desktop Metal merger.
Recognising some shareholders may still want Stratasys to pursue a process, 3D Systems has also said it is willing to amend its current binding proposal to include a 60-day go-shop period - meaning Stratasys would have the best part of two months to seek out competing offers. 3D Systems is willing to amend its offer this way in lieu of waiting for Stratasys’ announcement to evolve into an actionable sales process, which 'at this time appears highly uncertain and, based on precedent reviewed in the ISS and Glass Lewis reports, may remain uncertain for some time.'
During this 60-day go-shop period, Stratasys would be permitted to actively solicit alternative proposals to acquire Stratasys, while Stratasys would be permitted to terminate the merger agreement with 3D Systems to enter into a transaction that is deemed to be superior.
President and CEO, Dr. Jeffrey Graves commented: “We continue to believe that a combination between 3D Systems and Stratasys presents the most attractive opportunity for Stratasys shareholders and the additive manufacturing industry at large, given the massive opportunity for scale and synergy realisation.
“Our binding offer, which remains available until October 5, and our willingness to include a go-shop period in that offer now presents Stratasys with a unique ‘bird in the hand,’ allowing its Board to enter into a transaction that the market agrees will create significant value, while offering flexibility to explore other offers. This amendment reflects our confidence in the superior value of our proposal and our belief that the market has already had more than enough time to evaluate interest in Stratasys, which has already yielded ten offers for Stratasys in the last six months.”
