3D Printing Industry wrote yesterday that German 3D printing manufacturer Concept Laser was a target for takeover after GE’s bid for SLM Solutions Group AG (FRA:AM3D) was scuppered by Elliott Management Corporation, the activist hedge fund.
This morning GE confirmed the rumor with the announcement they have acquired a 75% stake in the privately held company. The new deal values the 3D printing company at $599 million.
Concept Laser replaces SLM Solutions as GE 3D printing prize
As previously reported, GE refused to play along with billionaire Paul Singer’s gameplan, a strategy which saw the hedge fund build a stake in SLM Solutions. With other options available to GE this was foreseeable. Concept Laser are manufacturers of the LaserCUSING® range of metal additive manufacturing machines. This is a powder bed based laser melting technique similar to the technology in use at SLM Solutions.
Hedge fund manager Singer has also accumulated stock in GE takeover target Arcam AB (STO:ARCM). As Arcam’s Electron Beam Melting (EBM) is still protected by patent, it is less likely the U.S. buyer will be so cool in negotiations. In early trading Arcam AB stock was priced at $33.60 , rising almost 10% as the November 1st deadline for shareholders to accept the GE bid approaches.
3D Printing Industry will continue to bring you the latest on this, and all developments in the additive manufacturing sector. As investment activity in the industrial 3D printing market heats up and companies begin to announce financial results this is undoubtedly an exciting time for those in the business.
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Featured image by Michael Petch.
UPDATE: 04:48 EDT: GE have announced ammended terms to the Arcam AB offer. The U.S. company is now offering shareholders in Arcam 300 Swedish Crowns ($33.50 USD), up from 285 SEK ($31.80 USD) and have lowered the acceptance threshold to 75%. This revision values the Swedish company at $696 million and supports our earlier assertion that GE are determined to gain ownership of Arcam’s EBM technology.
UPDATE 2: 06:11 EDT: SLM Solutions have issued a statement about the failed merger. Dr. Markus Rechlin, CEO of SLM Solutions Group AG, said, “Being part of the GE Group would have given us the opportunity to accelerate on our growth track. GE had made serious and credible commitments to expand our locations and distribution network. In our view, a successful offer would not only have been in the interest of GE but also in the interest of our company, our employees and our shareholders.”
SLM Solutions reiterate there previous statement that management and board members, “had unanimously recommended acceptance of the offer.” Also in the statement the company advise they still expect to meet financial targets for the year, but this “will depend to a high degree on the results of the fourth quarter with the important trade fair formnext in Frankfurt.”
“The takeover offer and its course have caused increased uncertainty in the market for additive manufacturing and for our customers and employees,” added Uwe Bögershausen, CFO of SLM Solutions Group AG.