Proxy advisor ISS opposes Stratasys, Desktop Metal merger in 3D printing

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Influential proxy advisory firm Institutional Shareholder Services recommended 3D printer manufacturer Stratasys shareholders reject plans to buy Desktop Metal, saying another offer 'presents a more convincing route to value creation,' in a note seen by Reuters on Wednesday. ISS's recommendation, which tends to carry significant weight with shareholders, comes only days before the Sept. 28 vote and marks the latest twist in a years-long drama over how the 3D printing industry may be consolidated. 'It is not clear that it (the all-stock offer Stratasys made for Desktop Metal) creates value for 3D printer manufacturer Stratasys shareholders,' ISS wrote in its note to clients with a headline 'vote against acquisition at SSYS meeting.'

NEW YORK - Influential proxy advisory firm Institutional Shareholder Services recommended 3D printer manufacturer Stratasys shareholders reject plans to buy Desktop Metal, saying another offer "presents a more convincing route to value creation," in a note seen by Reuters on Wednesday.

"It is not clear that it creates value for 3D printer manufacturer Stratasys shareholders," ISS wrote in its note to clients with a headline "vote against acquisition at SSYS meeting."Instead, ISS wrote that a bid from 3D Systems to buy Stratasys, which was disclosed last week and is the latest in a series of overtures to buy the company that now plans to buy someone else, would offer more value to shareholders.

The deal would generate about $50 million in revenue synergies plus $50 million in annual cost savings by 2025, the Stratasys board has argued. The directors felt this deal was more attractive than others, including overtures from 3D Systems and Nano Dimension.

 

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