Israeli 3D printing company Nano Dimension (Nasdaq: NNDM) has announced that it has submitted an offer to purchase Israeli polymer 3D solutions company Stratasys (Nasdaq: SSYS) shares for $18 per share in cash. Stratasys has confirmed receipt of the unsolicited, non-binding acquisition proposal, which reflects a 36% premium on last night's closing price on Wall Street and a company valuation of $1.1 billion.
In after-hours trading, Stratasys's share price jumped 13.50% to $15.9. According to Nano Dimension's announcement, it is not attempting a hostile takeover. Nano Dimension said, "The company has had communications with Stratasys and will continue to work towards a mutually acceptable definitive agreement." In response Stratasys said, "The Board of Directors will carefully review and evaluate the proposal to determine the course of action that it believes is in the best interests of the company and Stratasys shareholders. Stratasys shareholders do not need to take any action at this time."
Nano Dimension, led by CEO Yoav Stern, already holds a 14.5% in Stratasys and this week became an activist shareholder in the company by demanding to influence its business moves. Last summer Nano Dimension became a party at interest in the company and in response Stratasys, led by CEO Dr. Yoav Zeif adopted a limited duration shareholders rights plan (poison pill) approach to prevent a takeover.
This mechanism comes into operation if any company reaches a 15% holding in Stratasys. In an attempt to avoid this, Nano Dimension is now offering to buy all Stratasys's shares so that the shareholders will ultimately decide matters, providing the offer becomes binding.
Nano Dimension raised $1.5 billion on Nasdaq during the peak of the tech boom in 2020-2021, and still has more than $1 billion cash in its coffers for acquisitions, even though its market cap stands at only $800 million.
At the same time, Nano Dimension itself has been the target of a takeover by one of its activist investors, Canadian investment firm Murchinson, which has sought to oust some of the Israeli company's directors in favor of its own candidates. It may be that emptying its coffers through a major acquisition will quell Murchinson's motivation to takeover Nano Dimension.
Yesterday Murchinson announced that US consultancy company ISS had recommended that its customers vote in favor of its bid at the upcoming meeting including its attempts to oust Nano Dimension's chairman.
According to Nano Dimension, "The combination (with Stratasys) would create the global leader in 3D printing with an unparalleled portfolio of materials, software, and deep learning together with strong sales channel control."
Both companies operate in the 3D printing market, with Stratasys in the polymers sector and Nano Dimension operating in a range of materials. The companies are almost neighbors with Stratasys based in Rehovot and Nano Dimension in Ness Ziona.
Published by Globes, Israel business news - en.globes.co.il - on March 10, 2023.
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