Currency in USD
Last close As at 17/03/2023
USD2.72
▲ −0.11 (−4.04%)
Market capitalisation
USD689m
Research: TMT
Nano Dimension has made a formal, non-binding offer to acquire Stratasys (Nasdaq: SSYS) for US$18.00 per share in cash. Under the terms of the proposal, Nano Dimension, which has been the largest shareholder of Stratasys since July 2022 and currently owns approximately 14.5% of the company’s outstanding shares, would acquire the remaining shares of Stratasys for a total consideration of c US$1.1bn in cash. The offer price reflects a premium of 36% to the closing trading price on 1 March 2023, and a 31% premium to the 60-day volume-weighted average price up to 1 March 2023. Nano Dimension states that it has held constructive, informal discussions with Stratasys, which has announced that it ‘will carefully review and evaluate the proposal’.
Nano Dimension |
Creating additive manufacturing industry leader |
Formal offer to acquire Stratasys |
Technology |
15 March 2023 |
Share price performance Business description
Analyst
Nano Dimension is a research client of Edison Investment Research Limited |
Nano Dimension has made a formal, non-binding offer to acquire Stratasys (Nasdaq: SSYS) for US$18.00 per share in cash. Under the terms of the proposal, Nano Dimension, which has been the largest shareholder of Stratasys since July 2022 and currently owns approximately 14.5% of the company’s outstanding shares, would acquire the remaining shares of Stratasys for a total consideration of c US$1.1bn in cash. The offer price reflects a premium of 36% to the closing trading price on 1 March 2023, and a 31% premium to the 60-day volume-weighted average price up to 1 March 2023. Nano Dimension states that it has held constructive, informal discussions with Stratasys, which has announced that it ‘will carefully review and evaluate the proposal’.
Year |
Revenue |
EBITDA |
PBT* |
PAT* |
DPS |
P/E |
12/18 |
5.1 |
(12.3) |
(15.1) |
(15.1) |
0.0 |
N/A |
12/19 |
7.1 |
(11.7) |
(7.9) |
(7.9) |
0.0 |
N/A |
12/20 |
3.4 |
(12.6) |
(15.0) |
(15.0) |
0.0 |
N/A |
12/21 |
10.5 |
(38.4) |
(44.5) |
(44.5) |
0.0 |
N/A |
Note: *PBT and PAT are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
From April 2021 onwards, Nano Dimension has been building a portfolio of complementary additive manufacturing technologies through a combination of acquisition and investment in in-house capability. This strategy has enabled it to grow revenues from US$3.4m in FY20 to US$43.6m in FY22. This potential transaction would be transformative because Stratasys generated US$651.5m in revenues and US$36.1m adjusted EBITDA in FY22. Management’s adjusted EBITDA guidance for FY23 is US$35–50m.
The potential deal will complement Stratasys’s more mature, mostly polymer-based additive manufacturing technologies with Nano Dimension’s portfolio of predominantly niche, emerging technologies. This includes the pioneering DeepCube inference accelerator, which improves the performance of additive manufacturing hardware. Importantly, the deal will give access to Stratasys’s network of over 200 sales partners and extensive customer base, which includes Airbus, General Motors and the US Navy, cutting the time needed to introduce Nano Dimension’s products to a wide marketplace.
The execution of a definitive merger agreement between Nano Dimension and Stratasys is subject to due diligence and approval by each company’s board of directors, while completion of the transaction is subject to customary closing conditions, including receipt of required regulatory approvals and approval of Stratasys’s shareholders. We note that Stratasys has a limited duration shareholder rights plan in place to encourage anyone seeking to gain a significant stake to negotiate directly with the board. Nano Dimension states that funding the acquisition is not contingent on securing third-party financing. The company had US$1,030m in cash and equivalents at end December 2022.
Noting that Stratasys had US$327.8m in cash and equivalents and no debt at end FY22, we infer that the offer values Stratasys at c 24x FY22 adjusted EBITDA and c 21x the midpoint of FY23 adjusted EBITDA guidance ($42.5m).
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Research: Investment Companies
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