Farhad “Fred” Ebrahimi, the largest single shareholder in 3D printing company Desktop Metal, has acquired a 5.13% stake in competitor Stratasys worth around USD 47 million. This was revealed in a mandatory disclosure to the US Securities and Exchange Commission (SEC) on January 25, 2024.
Ebrahimi, whose fortune according to Forbes is at least USD 1.1 billion, currently holds 15.02% of Desktop Metal shares. According to the SEC filing, he began successively acquiring Stratasys common stock on November 29, 2023 and now owns 3,459,961 shares of the 3D printing pioneer. In addition, the Ebrahimi couple secured the right to purchase further Stratasys shares at a fixed price via derivative financial instruments (put options).
The transaction takes place against the backdrop of the failed merger between Stratasys and Desktop Metal, which was rejected by Stratasys shareholders with a 78.6% majority in September 2022. Ebrahimi is said to have been a supporter of the merger. Following the failure of the merger, he increased his Desktop Metal stake by USD 2.5 million in October.
According to the SEC filing, Ebrahimi currently has no intention of actively influencing Stratasys management. Further developments remain to be seen.