Stratasys stakebuilding: multiple investors acquire over 5% of shares

Multiple entities have acquired stock positions over 5% in 3D printer manufacturer Stratasys, recently published SEC 13G filings have revealed.  

Investment management firms Neuberger Berman Group LLC, its affiliate Neuberger Berman Investment Advisers LLC, and Rubric Capital Management LP, have acquired Stratasys shares worth 5.61%, 5.43%, and 6.15%, respectively. Israeli holding company Phoenix Holdings Ltd. also recently acquired Stratasys shares, purchasing a 5.26% stake in the company.    

Following the acquisitions, Neuberger Berman Group owns 3,877,966 shares, with Neuberger Berman Investment Advisers owning 3,752,674. Rubric Capital’s stake represents 4,250,000 shares overall, while Phoenix Holding now owns a total of 3,640,806 Stratasys ordinary shares.     

Published on 12 February 2024, all acquisitions were filed with the SEC on December 31, 2023. Stratasys’ share price has since fallen from $14.09 on January 2, 2023, to $12.39 on February 13, 2024. 

Stratasys' Headquarters in Rehovot, Isreal. Photo via Stratasys.
Stratasys’ Headquarters in Rehovot, Isreal. Photo via Stratasys.

Investors acquire Stratasys shares

In the SEC filings, all parties emphasized that the stock acquisitions have not been made to influence or change the management or control of Stratasys.

The ownership of Phoenix Holdings’ shares has been spread between its various subsidiaries. The holding company states that each of its indirect, majority or wholly-owned subsidiaries operates under independent management, making independent voting and investment decisions. 

This recent investment activity follows the news that US billionaire Farhad “Fred” Ebrahimi acquired a 5.1% stake in Stratasys worth $47 million. Having started buying Stratasys shares on 29 November 2023, Ebrahami now owns 3,549,961 individual shares in the company. 

The investor, who owns 15% of Massachusetts-based industrial 3D printer manufacturer Desktop Metal, also purchased 592,500 Stratasys PUT options, according to an SEC 13D filing.  

Although Ebrahimi is classified as an activist investor on the holding, the filing states that he currently has no intentions of pursuing mergers and acquisitions, part sales from the assets, or a change in the company’s management or board of directors.     

The new Stratasys F3300 FDM 3D Printer for Manufacturing. Photo via Stratasys.
The F3300 FDM 3D Printer for Manufacturing, Stratasys’ newest 3D printer. Photo via Stratasys.

Stratasys’ continued M&A uncertainty 

The recent stakebuilding follows a year of Stratasys merger and acquisition activity and uncertainty.  

In July 2022, Israeli electronics 3D printer manufacturer Nano Dimension purchased 12.12% of Stratasys shares. At the time, as with the latest round of stakebuilding, Nano Dimension stated that its investment was not made to influence the management or control of Stratasys. 

However, in March 2023 Nano Dimension submitted a $1.1 billion cash offer for Stratasys, worth $18.00 per share. This offer was unanimously rejected, and was followed by subsequent offers ranging from $19.55, $20.05, and $25.00 per share in cash, which were also rejected. 

Now owning approximately 14.1% of Stratasys’ outstanding ordinary shares, Nano Dimensions’ latest offer for Stratasys worth $16.50 per share was made on 23 December 2023. 

The outcome of this offer remains to be seen. Stratays has confirmed receipt of the “unsolicited preliminary proposal,” but is yet to announce its final decision. 

In September 2023, Stratasys announced that it had begun exploring strategic alternatives to maximize shareholder value, including the possibility of a potential sale. This followed the termination of Stratasys’ proposed merger with Desktop Metal, after 78.6% of Stratasys’ shareholders voted against the deal.   

According to Nano Dimension, the company has not yet been approached by Stratasys as part of its strategic alternative assessment.    

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Featured image shows Stratasys’ Headquarters in Rehovot, Israel. Photo via Stratasys.