Stratasys sends letter to shareholders to vote for Desktop Metal merger proposal

Stratasys (SSYS) sent a letter urging Stratasys shareholders to vote for each of the company’s proposals related to its previously announced merger agreement with Desktop Metal (DM), ahead of the Stratasys extraordinary general meeting of shareholders. The full text of the letter follows: “Your vote is important to ensuring Stratasys and its shareholders can realize the significant value creation opportunities of the proposed merger with Desktop Metal. VOTE TODAY “FOR” each of the proposals to be considered at the Stratasys Extraordinary General Meeting of Shareholders on September 28, 2023, including the Stratasys Merger-related proposal. Vote FOR Combining the Best Metal Innovation Company with a Polymer Leader with the Best Operations and Go-To-Market to Create an Additive Manufacturing (“AM”) Powerhouse Stratasys’ mission to lead AM into mass production will be accelerated by having a metal manufacturing solution alongside its robust polymer offering Desktop Metal has the best and most advanced technology for mass production, based on our extensive analysis of the metal landscape Desktop Metal brings a complementary portfolio of growth assets in highly attractive markets such as Dental, digital casting and photopolymerization, which will be accelerated by Stratasys’ extensive market reach and global go-to-market infrastructure to create immediate- to long-term impact Desktop Metal’s innovative portfolio and technology pipeline stands out amongst AM players with strong IP across applications Dear Stratasys Shareholder, The Stratasys Extraordinary Meeting of Shareholders is fast approaching on September 28, 2023. Your vote is extremely important, regardless of the number of Stratasys ordinary shares you own. The Stratasys Board of Directors unanimously recommends you vote today “FOR” the Merger-related proposal to enable the value-adding combination with Desktop Metal (“DM”). This transaction will create an AM powerhouse marked by innovation, operating efficiency and unmatched execution, delivering compelling value for our shareholders. Stratasys’ mission to lead AM into mass production requires a metal manufacturing solution alongside its robust polymer offering. After extensive analysis of the metal landscape, Stratasys believes Desktop Metal has the best and most advanced technology for metal mass production. With Desktop Metal’s complementary and high-growth metals portfolio, Stratasys’ total addressable market for manufacturing is expected to double by 2027. Desktop Metal provides broad products and services to Stratasys with minimal overlap, creating a fully complementary AM portfolio. As the first industrial AM company covering the full manufacturing lifecycle from design to mass production in both polymers and metal, the combination of Desktop Metal and Stratasys would create an at-scale growth AM company with increased profitability. The transaction with Desktop Metal is expected to deliver compelling value for shareholders: Creates the first greater than$1B AM company with significant opportunity to capture the value of AM for mass production Doubles Stratasys’ total addressable market for manufacturing by 2027 Achieves $50+ million in cost synergies and an additional $50M in run-rate revenue synergies expected to be fully realized by 2025 Generates $1.6+ billion of revenue and $300+ million of EBITDA in 2026, for a 20% pro forma EBITDA margin Well-capitalized combined company provides strong foundation for continued innovation and growth Your vote is critical to ensuring Stratasys and its shareholders can realize the significant value creation opportunities of the proposed merger with Desktop Metal. Ahead of the Stratasys Extraordinary General Meeting on Thursday, September 28, 2023, we urge shareholders to vote “FOR” each of the proposals to be considered at the Stratasys EGM, including the Stratasys Merger-related proposal.”