The board of directors of Stratasys has unanimously agreed to engage in merger talks with competitor 3D Systems after a third unsolicited offer from the South Carolina-based company.
Stratasys, the 3-D printer manufacturer based in Eden Prairie and Rehovot, Israel, has received multiple deal offers since March. This includes a tender offer from Nano Dimension, also based in Israel, seeking majority control of Stratasys shares. The cash and stock merger offer from Rock Hill, S.C.-based 3D Systems came after that.
Both are offers of more than $1 billion. But some Stratasys stockholders have pushed for the company to negotiate with suitors, especially 3D.
The Stratasys board consulted with outside financial consultants and legal advisers to determine they would engage further with 3D Systems in what could result in a superior merger proposal, according to a news release Monday.
On May 25, Stratasys announced its own deal to acquire Massachusetts-based Desktop Metal. The board of Stratasys is still unanimous in its support for a Desktop Metal acquisition but is now willing to engage in further discussions with 3D Systems.
The board of directors at Stratasys will continue to do more due diligence to determine if 3D Systems offer constitutes a "Superior Proposal."
Last week Nano Dimension and 3D Systems both raised their offers after the Stratasys board rejected initial and revised offers from each.
"We are pleased with the Stratasys board's determination," said Dr. Jeffrey Graves, president and chief executive of 3D Systems in a press release. "We anticipate prompt termination of the Desktop Metal merger agreement and countersignature of the agreement to combine 3D Systems and Stratasys so that we can deliver our collective stakeholders the unparalleled benefits of the envisioned combined company."