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Shareholders Reject Stratasys Merger with Desktop Metal

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3D-printer maker Stratasys announced today that its shareholders did not approve a merger with 3D-printer maker Desktop Metal, and that its board of directors would explore strategic alternatives for the company.

The shareholders’ decision was based on a preliminary count of votes cast at an extraordinary shareholders meeting, and Stratasys has ended the merger agreement. 

On May 25th, Stratasys and Desktop Metal had announced that they had entered into a merger agreement to create a $1.8 billion 3D-printer company.

The firm says potential strategic alternatives may include a strategic transaction, potential merger, business combination, or sale.

The Stratasys board had strongly recommended that its shareholders approve the merger with Desktop Metal, which it said would create an “AM (additive manufacturing) powerhouse marked by innovation, operating efficiency and unmatched execution.”

In the wake of shareholders’ rejection of the merger however, Dov Ofer, chairman of Stratasys’ board of directors, said: “We have decided to undertake a comprehensive and thorough review of all available strategic alternatives. 

“We are entering this review as the leader in the additive manufacturing space and will continue to execute our strategy, powered by innovation and profitable growth, which has led Stratasys to outpace the competition. Importantly, we remain focused on our mission to deliver value to customers and are committed to taking the appropriate actions to maximize value for all Stratasys shareholders,” Ofer said.

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