3D Systems has submitted an unsolicited proposal to acquire Israeli 3D-printing firm Stratasys, which recently entered into a USD 1.8 billion merger agreement with Desktop Metal in late May.
Considering the current price of 3D Systems shares at $8.33, the value of the offer per share stands at approximately $17.91 per share.
Given Stratasys’ outstanding shares, which total 68.40 million, the complete value of the deal amounts to approximately $1.225 billion.
However, the dynamics drastically alter if the price of 3D Systems’ stock rises to $10, 3D Systems said in a press release.
The deal’s overall value would rise to around $1.367 billion, or $20.01 per share, from the current amount.
Stratasys shareholders would also own 40 per cent of the merged business after the proposed merger with 3D Systems and get around $540 million in cash.
“The combination of 3D Systems and Stratasys is simply the best outcome for the shareholders of both companies,” said 3D Systems President and CEO, Dr Jeffrey Graves.
He added, “We feel strongly that now is the time for all parties to recognize the overwhelming logic of our two businesses coming together.”
Graves said the company is in a unique position to act swiftly and confidently, urging the Stratasys Board of Directors to consider its proposal and bring about this merger.
As a result of a proposed merger between the two businesses, 3D Systems stated that it anticipates cost synergies of $100 million.
According to the US printing giant, the combined business will earn an anticipated $1.3 billion in revenue for the entire 2024 fiscal year, making it the largest pure-play additive manufacturing company in the sector.
Dr Graves went on to say, “We are at an inflection point in our industry, and we see significant upside for our shareholders and all stakeholders by capturing the benefits of scale, enhancing investment in innovation and delivering long-term profitable growth.
He also expressed the company’s commitment to creating a combined platform that enables both companies to serve its global customers and lead the industry with innovative technology offerings.
