Why Stratasys Shares Are Surging Today

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  • Additive manufacturing solutions provider 3D Systems Corp DDD confirmed its submission of a proposal to combine with Stratasys Ltd SSYS.
  • The cash and stock merger would convert each Stratasys share into $7.50 in cash and 1.2507 newly issued shares of 3D Systems.
  • The combination would lead to Stratasys shareholders owning 40% of the combined company and receiving about $540 million in cash.
  • Yesterday, Stratasys confirmed the receipt of an unsolicited non-binding indicative proposal from 3D Systems. Meanwhile, Stratasys Board has not made any determination as to the 3D Systems proposal.
  • As announced on May 25, 2023, Stratasys entered into a merger agreement with Desktop Metal, Inc. DM, under which Stratasys and Desktop Metal will combine in an all-stock transaction.
  • 3D Systems' offer terms imply a nominal initial value per Stratasys share of approximately $19 based on 3D Systems' 60-Day Volume-Weighted Average Price (VWAP) as of May 24, 2023.
  • The offer implied nominal value represents a premium of 27% to Stratasys closing trading price on May 24, 2023, and a premium of 35% to Stratasys' stock price as of the close of trading on March 9, 2023, the last trading day before Nano Dimension Ltd's NNDM first public offer to acquire Stratasys.
  • On May 30, 2023, Stratasys Board unanimously determined the partial tender offer by Nano Dimension undervalues the company.
  • Price Action: SSYS shares are trading higher by 10.09% at $16.04 in premarket on the last check Friday.
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