Investor Rejection Scuttles Proposed Stratasys-Desktop Metal Merger
As reported in IndustryWeek, Stratasys, a company that specializes in 3D printer technologies, failed to persuade investors that its proposed merger with Desktop Metal would lead to future profitability. Shareholders representing 78.6% of Stratasys shares voted against the deal, prompting the company’s board to explore alternatives. “We have decided to undertake a comprehensive and thorough review of all available strategic alternatives,” said Dov Ofer, chairman of Stratasys’ board of directors.
Two rival firms, 3D Systems and Nano Dimension, had submitted bids to acquire Stratasys in recent months and had actively encouraged investors to vote against the Desktop Metal purchase, IndustryWeek reports, as had Donerail Group, owner of more than 2% of Stratasys’ stock.
Stratasys CEO Yoav Zeif’s vision of combining metal and polymer 3D printing technologies under one company was met with opposition not only from rival companies but from proxy advisor Institutional Shareholder Services. ISS recommended that investors vote against the proposed deal and endorsed 3D Systems’ alternative offer to acquire Stratasys.
