Business
3D Systems Updates its Shareholders on its Proposal for Stratasys
ROCK HILL, S.C., June 20, 2023 (GLOBE NEWSWIRE) -- 3D Systems (NYSE: DDD) (“the Company”) today provided an update to its shareholders regarding its proposal
About this update from Stratasys, Ltd.
[{"type":"text","content":"ROCK HILL, S.C., June 20, 2023 (GLOBE NEWSWIRE) -- 3D Systems (NYSE: DDD) (“the Company”) today provided an update to its shareholders regarding its proposal to combine with Stratasys Ltd. (NASDAQ: SSYS) (“Stratasys”) in a cash and stock merger that would convert each Stratasys share into $7.50 in cash and 1.2507 newly issued shares of 3D Systems common stock1. The combination would result in Stratasys shareholders owning approximately 40% of the combined company and receiving approximately $540 million in cash. President and CEO Dr. Jeffrey Graves stated, “Following the overwhelmingly positive market reaction to our proposal and the positive outreach we have received from numerous shareholders, we felt it was important to provide a public update to our shareholders, given that Stratasys has not engaged with 3D Systems since we sent our proposal 21 days ago, or commented publicly other than confirming receipt of our proposal.” Dr. Graves continued, “We remain steadfast that the combination of our two companies offers our collective shareholders the most compelling immediate value, long-term upside, and certainty to close. The additive manufacturing industry is at a pivotal moment—and we believe that now is the right time to pursue this combination in order to leverage the advantages of scale that our combined company would deliver. We are confident that our proposal is superior to Stratasys’s existing transaction, and as such, we would expect the Stratasys Board to engage promptly with us to reach agreement on a transaction for the benefit of shareholders of both companies. We are committed to bringing this combination to fruition as quickly as possible.” The Company notes the strong market reaction to its proposal, including that on June 2, 2023, the day the proposal was disclosed to the market by 3D Systems, Stratasys shares rose 11.26%. Further, the 11.40% increase in 3D Systems shares on the day of disclosure drove an additional value increase for both companies’ shareholders. The merits of the Company’s proposal were also highlighted by industry analysts, including Troy Jensen at Lake Street Capital Markets, who stated in a research note on June 5, 2023, “If you believe scalability is needed for the additive manufacturing industry…then the combination of 3D Systems and Stratasys probably makes the most sense.” The Company f...