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On May 25 2023, Stratasys, a $1 billion market cap and $720 million enterprise company, has announced its intention to acquire Desktop Metal, a $560 million market cap and $520 million enterprise value company, in an all-stock deal whereby one Desktop Metal shares becomes 0.123 Stratasys shares. If we assume the share price from the press release at $1.88 per share, then that equates to a $600 million valuation for Desktop Metal or around 3x Sales.
At the same time, Nano Dimensions, another 3D printing company, has filed its intention for a special tender offer for $18 per share to boost its stake on Stratasys to around 53-55%. Nano Dimension has been trying to acquire Stratasys for a couple months now and has a 14.2% stake in Stratasys. We believe this special tender offer undervalues Stratasys long-term and Nano Dimension and Stratasys as a combined company will not synergize as planned. We would also like to note that Stratasys has a poison pill until July 24th which will likely be extended and may trigger during the tender offer though Nano is arguing otherwise.
