3D Systems issues letter to shareholders of Stratasys

3D Systems (DDD) issued the following public letter to shareholders of Stratasys (SSYS) after leading independent proxy advisor, Institutional Shareholder Services, recommended that Stratasys shareholders vote AGAINST Stratasys’ planned acquisition of Desktop Metal (DM) ahead of its September 28, 2023 Extraordinary General Meeting of Shareholders to vote on the Desktop Metal transaction. ISS discussed its recommendation in a detailed, 9-page analysis that concluded: “It is not clear that creates value for SSYS shareholders. DDD’s alternative offer to acquire, by contrast, presents a more convincing route to value creation for SSYS shareholders.” The full text of 3D Systems’ letter is as follows: “Stratasys Shareholders, You have a critical decision to make on September 28th about the future of Stratasys: 1. Vote FOR the planned all-stock merger with Desktop Metal, a transaction that would massively dilute Stratasys shareholders only to rescue an amalgamation of deteriorating additive manufacturing businesses rapidly cobbled together in 2021. Or 2. Vote AGAINST the Desktop Metal transaction to send a clear message to the Stratasys Board of Directors to accept the superior cash and stock offer from 3D Systems. The transaction with 3D Systems would provide Stratasys shareholders with approximately $509 million of upfront cash consideration and ownership of 46% of the combined company, featuring a scaled platform with industry-leading revenues, highly attractive gross margins, positive EBITDA and attractive upside exposure to its high-growth regenerative medicine platform.”