Stratasys and Desktop Metal receive a second request for information from the US Department of Justice’s Antitrust Division

Stratasys and Desktop Metal have received a request for additional information regarding the pending merger agreement between the two companies from the Antitrust Division of the US Department of Justice. A filing filed with the United States Securities and Exchange Commission (SEC) detailed that on August 18, 2023, companies received a request for additional information, also known as a “second request,” from the Department of Justice under the Hart-Scott-Rodino Antitrust Improvement Act (HSR) of 1976

According to the Federal Trade Commission (FTC), if the FTC or the Department of Justice seeks additional information through a second request, then by law it becomes prohibited to complete the transaction until companies fully answer all questions and concerns. The document stated that the issuance of a second application extends the waiting period imposed by the HSR Act to 30 days after Stratasys and Desktop Metal have substantially met the requirements, unless the Department of Justice completes its review period earlier.

Stratasys and Desktop Metal vs. Stratasys and 3D Systems

The history of Stratasys’ merger with Desktop Metal goes back to May 25, when the $1.8 billion merger agreement was announced. In the meantime, Stratasys itself was tried to be taken over by Nano Dimension (which finally withdrew from it at the end of July this year) and 3D Systems. All of Nano Dimension’s takeover bids were rejected by default, but 3D Systems’ case is more complicated.

After Stratasys rejected the first and second bids, 3D Systems’ third bid on July 13, 2023 led Stratasys to enter talks – despite the Desktop Metal merger agreement. Originally, information about the official merger of Stratasys with 3D Systems was to be announced on August 4 this year, however, the parties still cannot agree on many issues, accusing each other of ill will.

Antitrust Act

On the other hand, since the merger of Stratasys with Desktop Metal – companies that have a complementary product offer, raised doubts of the Federal Trade Commission and the Department of Justice regarding the antitrust act, the possible merger of Stratasys with 3D Systems seems to be even more problematic. .? Both companies are at the moment the absolute leaders of the 3D printing market in the world, both in terms of generated revenues (~650 million / year from Stratasys and ~ 550 million / year from 3D Systems) and the number of industrial-class 3D printers sold, so their combination would create a company with the largest range and technological capabilities in every 3D printing segment.

In addition, it should be remembered that Stratasys owns nearly half of the shares in UltiMaker, created from the merger of desktop 3D printer market leaders – Ultimaker and MakerBot, which includes Thingiverse – the largest platform with free 3D printing models as well as CURA and GrabCad software.

Since the transaction between Stratasys and the much smaller Desktop Metal has raised antitrust controversy, a possible transaction between Stratasys and 3D Systems will be much more difficult to defend…

Source: www.seekingalpha.com via www.tctmagazine.com