Well, that’s one outcome we didn’t see coming. Any merger with Stratasys would have been the merger of the year. After terminating the talks on a potential merger with Stratasys, the company reaffirmed its unanimous approval of the transaction with Desktop Metal.
The only thing is, at a special meeting of Stratasys stockholders on Sept. 28, Stratasys announced that a preliminary tally indicated that it did not obtain stockholder approval for the proposals related to the merger agreement. Consequently, the previously announced merger agreement has been terminated and DM is to be compensated agreed-upon fees.
In a press release issued by Desktop Metal right after Stratasys announcement, Founder and CEO Ric Fulop said:
“We’re grateful for our shareholders’ support. While the team at Desktop Metal believed in the merits of our combination, and is disappointed in the outcome of the merger agreement, we are completely confident in the trajectory of our business, which continues to lower operating costs while growing revenue. Our plan to reduce costs and generate revenue remains on track as customers continue transitioning to our AM 2.0 technologies for mass production of metal, polymer, ceramic and health products.”
Desktop Metal entered the second half with cash of $127.6 million, and has demonstrated improvements to operating cash management over multiple quarters.
In the meantime, Stratasys will explore potential strategic alternatives which might include a strategic transaction, potential merger, business combination or sale.
“We have decided to undertake a comprehensive and thorough review of all available strategic alternatives,” said Dov Ofer, Chairman of Stratasys’ Board of Directors. “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.”
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