What happened
Shares of 3D-printer company Stratasys (SSYS -2.24%) traded higher on Wednesday after the company received a new buyout offer from Nano Dimension (NNDM -4.10%). As of 1:10 p.m. ET today, the stock was up almost 13%. For its part, Nano Dimension stock was flat.
So what
Nano Dimension is offering to buy Stratasys for $19.55 per share, representing a 38% premium to where the stock traded before the market opened this morning. At the risk of oversimplifying his arguments, Nano CEO Yoav Stern says he believes Stratasys has good assets, but that its management isn't headed in the best direction to address the future of the 3D printing industry. Naturally, he believes Nano Dimension is.
Nano already owns 13.7% of Stratasys shares on a fully diluted basis. And it offered to buy Stratasys earlier this month for $18 per share. Stratasys' management responded by unanimously rejecting the offer as "substantially" undervaluing the company.
It seems Nano is willing to try again with an offer that's about 9% higher from its last offer. And that's why Stratasys stock was up today.
Now what
Nano Dimension can't mount a hostile takeover of Stratasys, which has a poison pill in place -- a mechanism that prevents (or anyone else) from buying just enough shares to control the company. Therefore, Nano can only claim its prize if Stratasys says yes.
Stratasys doesn't appear interested. Not only did it unanimously reject Nano's last offer, it adopted its poison pill last July after Nano acquired a 12% stake. So the company has been against this proposed deal for some time now.
Stratasys' management says shareholders are better off if it stays a stand-alone company. And there's some merit to the argument, considering full-year 2022 revenue was up 7% year over year, it was profitable on an adjusted basis, and it has a strong balance sheet.
And shareholders will hope there's no merit to Stern's criticisms and that management has the company on the right path to stay relevant in the 3D-printing space in the future.
