Nano Dimension Has Launched a Formal Bid to Acquire Stratasys

As the additive manufacturing market continues to grow and mature, consolidation has been a major trend across the entire industry. Last year notably, we saw offers from large companies that were not traditionally in the 3D printing sector, such as Nikon and Meta, acquiring 3D printing companies. However, just because something is a trend does not mean it cannot still be surprising. For example, just yesterday, Nano Dimension, a leader in 3D printing electronics, announced that it had made a formal offer for AM solutions giant Stratasys.

This is a continuation of what started in July 2022 when Nano Dimension became the latest shareholder of Stratasys after acquiring shares, currently about 14.5%. At the time, the Stratasys Board of Directors acted quickly to avoid the possibility of a hostile takeover. This was done notably by adopting a limited duration shareholder rights plan. Commonly referred to as poison pills, the shareholder rights plans in question allowed the other shareholders to acquire shares at a significantly lower price. However, even at the announcement of this move, the board highlighted that the move was to gain time and decide what move may be in its best interest. It seems since then talks have continued between the two companies. Nano Dimension also mentions that this offer is non-binding and does not require a positive response from Stratasys, portraying it rather as an expression of their sincere interest in the other company.

Stratasys is a leading 3D printer manufacturer offering solutions using a variety of 3D printing technologies including but not limited to FDM, polyjet and SAF (photo credits: Stratasys)

What is Happening Between Nano Dimension and Stratasys?

So what exactly is on the table? Nano Dimension has offered $18.00 per share in cash to acquire the rest of Stratasys’ outstanding common shares (approximately 85.5% according to Nano Dimension). This means that the proposal would allow Nano Dimension to buy the shares for a total of about $1.1 billion, an offer price which Nano Dimension stresses “reflects a premium of 36% to the unaffected closing trading price as of March 1, 2023, and a 31% premium to the 60-day VWAP through March 1, 2023.”