Why Stratasys Shares Are Popping Today

Stratasys Ltd. SSYS shares are trading higher by over 12% after receiving another enhanced proposal from 3D Systems Corp DDD. 

Under the revised offer, DDD will acquire Stratasys for $7.50 in cash and 1.5444 newly issued shares of its common share per ordinary share of SSYS. 

The revised proposal (15% better than the previous offer) represents a value per Stratasys share of $24.07 based on DDD's closing share price as on July 12, 2023, representing a premium of 62% to Stratasys closing share price on May 24, 2023.

The offer also implies a value of around $28 per SSYS share and a total value of about $2 billion, including cost synergies of $100 million.

This combination would result in SSYS shareholders owning ~44% of the combined company and receiving around $540 million in cash.

Under the previous offer, SSYS shareholders would have owned 41% of the combined company and received about $540 million in cash.

Along with the revised binding offer, DDD has delivered a signed merger agreement in escrow to SSYS and commits to paying the termination fees, on behalf of SSYS, to Desktop Metal, Inc DM. 

Notably, in May, SSYS announced a deal to combine with Desktop Metal under an all-stock transaction worth $1.8 billion or $1.88 per share of Desktop Metal.

This week, SSYS stated Nano Dimension Ltd. NNDM raised the offer price of its special tender offer from $20.05 to $24.00 per share in cash and reiterated the percentage of SSYS shares being sought at 31.9%-36.9%.

Price Action: SSYS shares are up by 12.6% at $21.60 on the last check Thursday.