Shares of Stratasys Ltd. (SSYS) rose 3.2% in premarket trading on Tuesday, as the company receives a raised buyout bid from 3D Systems Corp. (DDD). This new bid from 3D Systems is said to represent “meaningful enhancements” to the previous bid.
New Buyout Bid Details
According to 3D Systems, the new bid means that Stratasys shareholders will receive $7.50 in cash and $1.3223 new 3D shares for each Stratasys share they currently own. Based on Monday’s closing prices, this would value Stratasys shares at $19.53 each, which is a 20.4% premium. The previous bid was for $7.50 in cash and 1.2507 3D shares.
More Favorable Proposal
3D Systems stated that its new bid is “more favorable to Stratasys shareholders than the announced Desktop Metal combination and should be deemed a superior proposal by the Stratasys board.”
Previously, on May 25, Stratasys had agreed to combine with Desktop Metal Inc. (DM) in an all-stock deal valued at about $1.8 billion. However, since then, Nana Dimension Ltd. (NNDM) had also submitted a bid to buy Stratasys at $18 per share in cash.
Despite all the bids received, Stratasys shares have rallied by 14.7% over the past three months while the S&P 500 index has only gained 8.8%.