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 about $1.8 billion, the sources said.
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If the merger is completed, Stratasys shareholders would own a majority of the combined company, “Bloomberg” added, cautioning that while talks are advanced and could even be completed this week, they could also still break down.
The 3D printing sector is a highly fragmented industry and ripe for mergers. Desktop Metal has more than 6,000 customers in several of the same industries as Stratasys, including automotive and consumer, “Bloomberg” reports. Rehovot-based Stratasys has been the subject of a hostile takeover by cash-rich Israeli 3D printing company Nano Dimension (Nasdaq: NNDM) in recent months. In response, Stratasys, led by CEO Dr. Yoav Zeif adopted a limited duration shareholders rights plan (poison pill) approach to prevent the takeover, which was at a company valuation of about $1.2 billion.
Stratasys share price closed down 2.49% on Nasdaq yesterday at $14.88, giving a market cap of $1.018 billion. The share price was 0.54% higher in aftermarket trading.
Desktop Metal’s share price was down 4.89% on Wall Street yesterday, giving a market cap of $562.5 million but was up 21.14% in aftermarket trading after the “Bloomberg” report.
Published by Globes, Israel business news – en.globes.co.il – on May 25, 2023.
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