US billionaire Farhad Ebrahimi builds 5% Stratasys stake

Stratasys headquarters credit:  Eyal Izhar
Stratasys headquarters credit: Eyal Izhar

Fred (Farhad) Ebrahimi and his wife Mary Wilkie Ebrahami have reported to the SEC that they have become a party-at-interest in the Israeli 3D printing company.

Israeli polymer 3D solutions company Stratasys (Nasdaq: SSYS) has attracted a new investor. US billionaire Fred (Farhad) Ebrahimi reported over the weekend that he and his wife Mary Wilkie Ebrahami hold a 5.1% stake in Stratasys, worth $47 million, making them a party-at-interest in the company.

Ebrahimi made his wealth as a cofounder of software publishing giant Quark, which was sold to a private equity fund in 2011. Ebrahimi reported to the US Securities Exchange Commission (SEC) that he began buying Stratasys shares in November 2023. The report on the holding is a report as an activist investor, but states that at this stage Ebrahimi has no plans on moves such as mergers and acquisitions, part sales from the assets or a change in the company's management or board of directors.

Ebrahimi also owns shares in Desktop Metal, a US 3D printing company that Stratasys tried to merge with, but failed to receive shareholders' approval. He became interested in Desktop Metal about six months ago, after the company reported the merger with Stratasys. A report published on a website dealing with the 3D industry states that he supports the company's merger with Stratasys. The merger fell through in September, and Ebrahimi, who recently purchased additional shares of Desktop Metal, now owns 15% of the company, which is valued at $206 million on the New York Stock Exchange.

Ebrahimi, 85, from Denver, Colorado immigrated to the US from Iran and graduated from MIT and UCLA in the 60s and 70s. He served as Quark CEO for nearly 20 years from 1986. Together with his wife Mary he has been engaged in philanthropy in recent years and several years ago donated $410,000 to the UCLA's Center for Near East Studies to set up a program for studying the Iranian diaspora. According to Forbes, Ebrahimi's wealth is worth $1.2 billion.

Stratasys, managed by CEO Dr. Yoav Zeif, has a market cap of $922 million on Nasdaq. The company's share price rose 20% last year but has fallen 7% in 2024. Last May, Stratasys announced that it was merging with US company Desktop Metal, which would have created a company worth $1.8 billion but in September it was forced to withdraw from the merger after its shareholders opposed the deal. Subsequently Stratasys said it would examine strategic alternatives.

Also during 2023, Israeli 3D printing company Nano Dimension (Nasdaq: NNDM) tried to take over Stratasys and recently reiterated its desire to acquire the company. US company 3D Systems also sought to acquire Stratasys but both these deals were rejected by Stratasys.

Published by Globes, Israel business news - - on January 28, 2024.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2024.

Stratasys headquarters credit:  Eyal Izhar
Stratasys headquarters credit: Eyal Izhar
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