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3D printer manufacturer Stratasys has terminated its deal to acquire Massachusetts-based industrial 3D printer manufacturer Desktop Metal.
This follows a preliminary vote where 78.6% of Stratasys’ shareholders voted against the proposed merger during an Extraordinary General Meeting of Shareholders (EGM) held on September 28. As a result, Stratasys has started a process to “explore strategic alternatives.”
Stratasys’ stock price has jumped by 8% in the wake of this most recent announcement, with Desktop Metal’s ticking down by 0.4%.
In a statement, Dov Ofer, Chairman of Stratasys’ Board of Directors, stated “We have decided to undertake a comprehensive and thorough review of all available strategic alternatives.”
“We are entering this review as the leader in the additive manufacturing space and will continue to execute our strategy, powered by innovation and profitable growth, which has led Stratasys to outpace the competition. Importantly, we remain focused on our mission to deliver value to customers and are committed to taking the appropriate actions to maximize value for all Stratasys shareholders,” Ofer added.
Following the collapse of the proposed merger, Desktop Metal is set to be compensated with agreed-upon fees.
“We’re grateful for our shareholders’ support. While the team at Desktop Metal believed in the merits of our combination, and is disappointed in the outcome of the merger agreement, we are completely confident in the trajectory of our business, which continues to lower operating costs while growing revenue,” commented Ric Fulop, Founder and CEO of Desktop Metal.
“Our plan to reduce costs and generate revenue remains on track as customers continue transitioning to our AM 2.0 technologies for mass production of metal, polymer, ceramic and health products.”
This deal termination follows the news earlier this month that 3D printer manufacturer 3D Systems has submitted a binding offer for the purchase of Stratasys, after its revised offer was rejected by the Stratasys board on September 12th.
As part of this binding offer, 3D Systems published a press release which urged Stratasys shareholders to “send a clear message to the Stratasys Board by voting no on the value-destructive Desktop Metal transaction on September 28th.”
The binding offer for Stratasys was set to expire on October 5th.
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Featured image shows Stratasys’ Headquarters in Rehovot, Isreal. Photo via Stratasys.
