Stratasys (SSYS) Gets Unsolicited Proposal From Nano Dimension
Stratasys SSYS confirmed that it has received an unsolicited takeover offer from Nano Dimension NNDM. The proposed offer price is $16.50 per share in cash, representing a 40% premium from the volume-weighted average Stratasys share price since Sep 28, 2023.
Stratasys had previously announced the initiation of a process to explore strategic alternatives, including a potential sale, on Sep 28, 2023.
Nano Dimension is the largest single shareholder of Stratasys with a current liquidity profile that includes more than $800 million of net cash. In July 2022, NNDM acquired 12.12% of SSYS’ outstanding shares and through the latest deal, it intends to buy the remaining stake of the Eden Prairie, MN-headquartered firm.
In March, Nano Dimension made an unsolicited, non-binding indicative proposal to acquire Stratasys for $18 per share in cash.
NNDM has not been approached by Stratasys or its representatives during the strategic alternatives assessment. The company has proactively submitted the acquisition proposal and expressed its willingness to enter customary transaction-related documentation for confirmatory due diligence immediately.
Nano Dimension anticipates that only a short due diligence period will be required by the board of NNDM, given its deep understanding of Stratasys and the additive manufacturing (AM) industry.
The buyout will likely strengthen Nano Dimension’s 3D printing business, creating a market leader with an unparalleled portfolio of materials, software and deep learning with a go-to-market strength in the form of sales channels. Moreover, the acquisition would give the manufacturing company access to Stratasys’ wide range of premium polymer-based 3D printing systems, material and consumables, fused deposition modeling and PolyJet AM machines portfolio, which would help it fortify its manufacturing capabilities and overall productivity.
NNDM plans to finance the proposed acquisition with available cash on hand. Additionally, the company is in discussions with financing sources to provide support if needed and there is no financing contingency to the proposal.
The proposal is subject to the completion of a satisfactory confirmatory due diligence process and the negotiation and execution of a mutually satisfactory definitive acquisition agreement. However, there is no guarantee that the acquisition will be completed.
Stratasys, Ltd. Price and Consensus
Stratasys, Ltd. price-consensus-chart | Stratasys, Ltd. Quote
What Makes Stratasys a Takeover Target?
Stratasys has been scaling newer heights across all its business segments. It has been benefiting from an increase in demand for 3D-printed materials and its focus on product launches and strategic partnership agreements or acquisitions.
Over the past few quarters, the company has inked strategic partnerships with the likes of Schneider Electric, The Boeing Co., Ford Motor Co., Siemens SIEGY, Boom Supersonic and Toyota TM to fuel its growth momentum. Such collaborations help introduce advanced 3D printing technologies to the aerospace and automotive industries while expanding Stratasys’ geographic reach and driving its market penetration. These partnerships spell opportunities for the company’s 3D systems business while increasing its installed base.
The Zacks Consensus Estimate for this Zacks Rank #3 (Hold) company’s 2023 earnings is pegged at 15 cents per share, indicating flat year-over-year growth. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stratasys recently collaborated with Siemens Healthineers for a groundbreaking research initiative aimed at creating innovative solutions to advance medical imaging phantoms for computed tomography (CT) imaging. CT phantoms, which are crucial tools in medical imaging and widely utilized in hospitals globally, are specialized devices employed to assess and verify the performance of CT scanners.
SSYS has entered into an agreement with Toyota to become the inaugural customer to acquire the state-of-the-art Stratasys F3300 3D printer. Toyota intends to employ the F3300 for various purposes, including new production support for parts and fixtures, as well as prototyping applications to expedite the introduction of new products to the market. The F3300 possesses the capability to produce intricate, high-precision parts vital to vehicle design and usage, spanning from prototypes to end-use components.
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