3D Printing Solutions Provider Stratasys Seeks Strategic Options As Desktop Metal Merger Fails

Polymer additive manufacturer Stratasys Ltd SSYS said its Board of Directors has initiated a process to explore strategic alternatives for the company. 

The decision follows its announcement that, based on its preliminary count of the votes cast at the company's Extraordinary General Meeting, the shareholders did not approve the previously announced merger agreement with Desktop Metal Inc DM.

Accordingly, Stratasys has terminated the merger agreement.

In May, SSYS announced a deal to combine with Desktop Metal under an all-stock transaction worth $1.8 billion.

Stratasys had earlier rejected offers made by 3D Systems Corporation DDD, stating that it significantly undervalued the company.

Nano Dimension Ltd. NNDM had opposed the SSYS-DM merger. Stratasys had rejected NNDM's proposal earlier, saying that it significantly undervalued the company.

Stratasys' strategic alternatives may include, but are not limited to, a strategic transaction, potential merger, business combination or sale.

Also, the Stratasys Board of Directors has unanimously adopted an amendment to the shareholder rights plan, under which the expiration date was extended for three months.

Price Action: SSYS shares are trading higher by 5.71% at $12.95 on the last check Thursday.