3D Systems Enhances Proposal To Combine With Stratasys

(RTTNews) - 3D Systems Corp. (DDD) announced Tuesday that it has submitted an enhanced proposal to the Board of Directors of Stratasys Ltd. (SSYS) to combine the two companies in a cash and stock transaction that would convert each Stratasys ordinary share into $7.50 in cash and 1.3223 newly issued shares of 3D Systems common stock.

Under the terms of the revised offer, the combination would result in Stratasys shareholders owning approximately 41% of the combined company and receiving approximately $540 million in cash at the time of consummation of the transaction.

3D Systems' June 27 proposal represents meaningful enhancements to its previous proposal submitted to the Stratasys Board on May 30, 2023. The Company believes the June 27 proposal is superior to Stratasys' announced combination with Desktop Metal.

The proposal represents a premium of 33% to the Stratasys closing share price on May 24, 2023, the last trading day prior to the announcement of the transaction with Desktop Metal.

Inclusive of estimated cost synergies, it represents a value of at least approximately $26 per Stratasys share, or an approximately 71% value uplift, inclusive of cost synergies.

3D Systems would also be open to offering Stratasys shareholders the opportunity to choose their preferred consideration mix of cash and stock.

No CFIUS or ITAR approvals required, unlike the proposed Stratasys-Desktop Metal transaction, and continued confidence that all applicable regulatory clearances will be obtained.