03-09-2023: Nano Dimension announced a $1.1 billion takeover bid for Stratasys
This event sparked one of the most bizarre and complex sagas in AM industry history
On March 9, 2023, Nano Dimension submitted a formal, non-binding offer to acquire Stratasys, the global leader in 3D printing at the time. The proposed purchase price was $18 per share in cash, translating to a total transaction value of $1.1 billion. Prior to this, in July 2022, Nano Dimension had already acquired 12.12% of Stratasys shares, prompting a series of defensive measures by Stratasys to prevent further stock accumulation.
By March 9, 2023, Nano Dimension owned approximately 14.5% of Stratasys shares (13.7% on a fully diluted basis) and had been the company’s largest shareholder since July 2022.
The offer represented a 36% premium over Stratasys’ unaffected closing share price on March 1, 2023, and a 31% premium over its 60-day VWAP up to that date. Nano Dimension claimed that its proposal would provide Stratasys shareholders with immediate and guaranteed value while significantly enhancing the company’s ability to capitalize on opportunities in the current market and economic environment.
Yoav Stern, then CEO of Nano Dimension, stated that the acquisition would create a market leader with an unmatched portfolio of materials, software, and deep learning (AI) while leveraging existing sales channels for stronger market penetration.
At the same time, the takeover bid emerged amid an internal power struggle within Nano Dimension. Yoav Stern was clashing with Murchinson, the company’s largest shareholder, which accused him of acting against the company’s best interests.
This event sparked one of the most bizarre and complex sagas in AM industry history. A few months later, Stratasys announced a merger with Desktop Metal, which Nano Dimension strongly opposed while simultaneously raising its acquisition offer for Stratasys. Then, to complicate matters further, 3D Systems entered the race, announcing its own bid for Stratasys!
In the end, nothing came of this months-long power struggle. After several offers, Nano Dimension withdrew from the race. 3D Systems was repeatedly rejected by Stratasys and also backed out. Meanwhile, the Stratasys-Desktop Metal merger was blocked by Stratasys’ own shareholders.
In July 2024, Nano Dimension announced its own acquisition of Desktop Metal, which has yet to materialize—both parties are now set to meet in court over the matter. Murchinson eventually seized control of Nano Dimension, ousting Yoav Stern on December 26, 2024. And as if that wasn’t enough, Markforged also became entangled in this drama.
Perhaps the most significant outcome was that AM companies suddenly fell under the scrutiny of external financial analysts, who discovered just how dire the financial conditions of several “unicorns” truly were. This, in turn, triggered the ongoing industry crisis.
Source: www.nano-di.com
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