Israeli 3D printing company Stratasys (Nasdaq: SSYS) is in talks to acquire US 3D printing company Desktop Metal Inc. (NYSE: MD), “Bloomberg” reports. The all-stock deal would create a leading 3D printer company, people familiar with the matter told ‘Bloomberg’, and the deal would value the combined company at around $1.8 billion, the sources said. .
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If the merger is completed, Stratasys shareholders would own the majority of the combined company, “Bloomberg” added, warning that while talks are advanced and may even be completed this week, they could also fall apart.
The 3D printing industry is a highly fragmented industry ripe for mergers. Desktop Metal has more than 6,000 customers in many of the same industries as Stratasys, including automotive and consumer, “Bloomberg” reports. Rehovot-based Stratasys has been subject to a hostile takeover by a cash-rich Israeli 3D printing company Nano dimension (Nasdaq: NNDM) in recent months. In response, Stratasys, led by CEO Dr. Yoav Zeif, took a time-limited shareholder rights plan (poison pill) approach to prevent the takeover, which was at a company valuation of approximately $1.2 billion.
Stratasys stock price closed 2.49% lower on the Nasdaq yesterday at $14.88, giving a market capitalization of $1.018 billion. The stock price rose 0.54% in the secondary market.
Desktop Metal’s stock price fell 4.89% on Wall Street yesterday, giving a market cap of $562.5 million, but rose 21.14% in the secondary market after the ‘Bloomberg’ report. .
Published by Globes, Israel business news – en.globes.co.il – May 25, 2023.
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