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Update 21:05: Updates with comment from Stratasys.
Nano Dimension (NASDAQ:NNDM) offered to acquire rival 3D printer maker Stratasys (NASDAQ:SSYS) for $18 a share in cash. Stratasys increased by 14% in the trade after hours. Nano Dimension fell 6.5%.
Nano Dimension (NNDM)) has had “constructive and informal” discussions with Stratasys (SSYS) on the non-binding offer and the advantages of a combination, according to a statement. NNDM said in a letter to the SSYS board that it is prepared to complete due diligence and negotiate a definitive agreement within 30 days.
Stratasys (SSYS) confirmed that it received the unsolicited offer and said its board will carefully review the proposal and determine what action is in the best interest of the company and its shareholders, according to a statement issued late Thursday.
Nano Dimension’s has been the largest shareholder in Stratasys (SSYS) since July 2022 and currently owns a 13.7% stake on a fully diluted basis. NNDM said the offer represents a 36% premium to Stratasys’ March 1 closing price. The offer represents a 29% premium to SSYS’s closing price on Thursday.
“We are very confident in the merits of the proposed transaction and strongly believe that the offer represents an attractive proposition to all of the company’s stakeholders,” Nano Dimension wrote in its letter to the SSYS board.
Stratasys (SSYS) did not immediately respond to Seeking Alpha’s request for comment.
The offer comes as Nano Dimensions has become involved in a fight with its largest shareholder, Murchinson, who is trying to win board seats and is seeking the removal of company chairman Yoav Stern. Earlier Thursday, the influential proxy service ISS recommended that shareholders vote to support all of Murchinson’s board nominees and the removal of Chairman Yoav Stern.
Last month, Nano Dimension (NNDM) said it had hired Lazard Ltd. to advise on strategic M&A and to address a challenge from Murchinson. Lazard has been working with the company on potential transformational acquisitions and “growth maximization strategies.”
Nano Dimension (NNDM) has a market capitalization of $770 million, while Stratasys (SSYS) is valued at $940 million.
In July, Stratasys (SSYS) adopted a limited shareholder rights or “poison pill” plan shortly after Nano Dimension (NNDM) disclosed that it had acquired a 12% stake in SSYS. The poison pill would take effect when a person or group acquired 15% or more of the company’s shares, and the pill would expire on July 24.