Nano Dimension's $560M Bid for $900M Valued Stratasys in Cash Deal

Introduction

On December 25th, the Israeli 3D printing company Nano Dimension once again proposed to acquire polymer 3D printing leader Stratasys in an all-cash transaction, valuing the latter at approximately $1.1 billion. This move is one of the latest significant news in the 3D printer industry in recent months.

On December 25, 2023, Xpiens learned that Stratasys (NASDAQ: SSYS) confirmed this week it had received a preliminary proposal from Nano to purchase all outstanding shares of Stratasys it does not currently own for $16.50 per share in cash. As of last Friday's NASDAQ closing, Stratasys' stock fell 0.15% to $13.110.

Stratasys Responds

The proposal offers a 40% premium over Stratasys' volume-weighted average stock price since September 28, 2023. After consultation with its independent financial and legal advisors, Stratasys initiated a strategic alternative review process. As part of this process, the Stratasys board will thoroughly examine and consider Nano's unsolicited preliminary proposal.
The evaluation of strategic alternatives was announced after Stratasys terminated the merger proposal with Desktop Metal, which over 75% of Stratasys shareholders rejected in September this year. Given this, Nano is again attempting to acquire the company and felt it necessary to issue a public press release announcing this intent.
Currently, Stratasys has publicly responded that it cannot guarantee that the company's strategic review process will result in any transaction or other strategic outcome. Also, the company does not intend to disclose further developments in the strategic review process unless and until Stratasys deems it appropriate or necessary. The statement also indicates that Stratasys shareholders currently need not take any action regarding Nano's preliminary proposal.
J.P. Morgan serves as the exclusive financial advisor for Stratasys, with Meitar Law Offices and Wachtell, Lipton, Rosen & Katz as legal advisors.

Nano Becomes Stratasys' Largest Shareholder

Currently, Nano has become the largest shareholder of Stratasys, attempting multiple times this year to acquire all remaining shares of the company. Nano holds 14% of Stratasys' shares and has offered to buy the rest for $16.50 per share. This price is 26% higher than Stratasys' closing price last Friday.
Nano is prepared to conduct due diligence and has the capacity to increase the price upon confirmation. This proposal is financially backed, with negotiations and final acquisition agreement processes underway. The company emphasizes its stable support for Israeli business operations and employees (since the outbreak of war with Hamas), especially considering Stratasys' significant influence in Israel. Moreover, the company stresses its solid foundation and commitment to becoming a leader in the 3D printing field.
In July, the Stratasys board unanimously rejected Nano's partial tender offer of $25 per share. In September, Stratasys also declined an amended acquisition proposal from additive manufacturing pioneer 3D Systems. Following this, on September 28, Stratasys stated that shareholders had not approved the plan to acquire Desktop Metal, hence the company would begin reviewing strategic alternatives.