3D Systems Corp. has substantially sweetened its bid for rival 3D printer company Stratasys Ltd., after its last two offers were rejected as too low.
(Bloomberg) — 3D Systems Corp. has substantially sweetened its bid for rival 3D printer company Stratasys Ltd., after its last two offers were rejected as too low.
3D Systems announced cash-and-stock bid that values Stratasys at about $24.07 a share, according to a statement Thursday, confirming a Bloomberg News report. Its last two offers were worth about $20 and $19 a share, respectively.
Under the binding offer, Stratasys shareholders would now get about 1.54 shares of 3D Systems for each unit of stock they own, along with $7.50 a share in cash. At that price, Stratasys investors would own about 44% of the combined company, up from 41% under the last offer.
Stratasys rose 7% to $20.54 at 9:31 a.m. in New York trading Thursday, giving the company a market value of about $1.4 billion.
The sweetened bid ramps up a four-way takeover battle, underscoring the race for scale in the fast-growing 3D printer space.
Stratasys agreed in May to acquire Desktop Metal Inc. in an all-stock deal that would create a 3D printer company valued at about $1.8 billion. Stratasys has also been rebuffing takeover overtures from 3D printer rival Nano Dimension Ltd., which this week upped an unsolicited, partial tender offer to $24 per share.
“We have continued to pursue a friendly combination with Stratasys with the objective of maximizing value for the shareholders of both companies,” 3D Systems Chief Executive Officer Jeffrey Graves said in a statement. “Multiple large Stratasys shareholders have reached out to inform us that they believe a combination of 3D Systems and Stratasys is the right path forward.”
3D Systems also delivered to Stratasys a signed merger agreement in escrow and agreed to pay any termination fees the target would owe to Desktop Metal, should shareholders fail to approve that deal. The 3D Systems offer is also not contingent on any debt or equity financing conditions.
A representative for Stratasys declined to comment.
Using a digital design as a guide, 3D printers can make objects from a variety of materials such as plastics, metal and cement. According to the Stratasys website, its products can be used in a range of industries including aerospace, automotive, consumer products and medical.
3D Systems has said that a pairing between the companies would create a dominant player in the space, with a greater range of technologies. It also said that together the companies could cut about $100 million in costs.
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