On Wednesday, we reported that Stratasys had finally ended talks with 3D Systems regarding a possible merger, at the same time pointing out the business weaknesses of its competitor (and would-be partner). In response, 3D Systems casually delivered the merger agreement it had signed to Stratasys and urged Stratasys’ shareholders to vote against an alternative merger with Desktop Metal. Nano Dimension – the largest shareholder of Stratasys announced that this is what it intends to do. So the battle continues…
3D Systems says its offer provides Stratasys shareholders with a “certain and superior alternative” to its proposed merger with Desktop Metal and may be countersigned by Stratasys upon termination of its agreement with Desktop Metal. The company calls Stratasys’ merger with Desktop Metal “value-destroying” and believes a vote against the Desktop Metal merger will “send a clear signal” to Stratasys’ board to accept 3D Systems’ offer.
3D Systems President and CEO Dr. Jeffrey Graves said: “Stratasys shareholders are extremely skeptical of recent decisions made by management and remain deeply concerned about the potential acquisition of Desktop Metal. In fact, since Stratasys rejected our latest proposal earlier this week, we have heard directly from a significant number of Stratasys shareholders who have urged us to provide them with an alternative.”
Dr. Graves also added: “Put simply, we do not believe the Desktop Metal transaction will lead to the unprecedented growth Stratasys claims. Before the upcoming vote, Stratasys shareholders have a choice: either they vote for Stratasys and Desktop Metal to merge and end the long path of value destruction, or they vote against it, encouraging real, tangible change.
We look forward to consummating our proposed transaction to redefine leadership in the additive manufacturing industry, capitalize on immediate financial opportunities, position both of our businesses for the long-term success and, above all, maximize shareholder value.”
Nano Dimension, which owns 14.1% of Stratasys shares, briefly stated: “We intend to vote AGAINST the proposed merger. Abstaining from voting or not voting is not sufficient to express opposition, so we call on other Stratasys shareholders to join us in voting AGAINST transaction.”
The situation will be resolved on September 28, 2023, during a parallel vote on the merger of Stratasys and Desktop Metal by the shareholders of both companies.
Source: www.3dsystems.com