Stratasys (NASDAQ:SSYS) shares rose over 3% in premarket Tuesday after 3D Systems (NYSE:DDD) improved its merger offer. 3D shares also gained 2.2% on the announcement.
The new offer converts each Stratasys ordinary share into $7.50 in cash and 1.3223 newly issued shares of 3D Systems common stock. As a result of the new offer, the merger would result in Stratasys shareholders owning around 41% of the combined company and receiving about $540 million in cash.
3D said the new offer consists of “meaningful enhancements” to its prior proposal submitted on May 30. The 3D printing company was forced to increase its offer as it attempts to hijack Stratasys’ combination with Desktop Metal (NYSE:DM), whose shares fell over 2% on today’s news.
“We are resolute in pursuing a friendly combination of 3D Systems and Stratasys. It is clear to us that we have presented the Stratasys Board with a superior proposal to the proposed Desktop Metal transaction. We believe there is no better opportunity to leverage the combined strength of our complementary portfolio and create an innovative additive manufacturing leader with unmatched global scale and we are encouraged by the overwhelmingly positive response we’ve received from the market,” said 3D Systems’ president and CEO Dr. Jeffrey Graves.
Last week, Stratasys urged its shareholders NOT to tender their shares into Nano Dimension's (NASDAQ:NNDM) unsolicited partial tender offer to acquire ordinary shares of Stratasys for $18.00 per share in cash.