The planned merger of 3D printer manufacturers Stratasys and Desktop Metal has failed. Stratasys announced that its own shareholders voted against the merger at an extraordinary general meeting.
According to a preliminary count, more than 78 percent of Stratasys shareholders voted against the $1.8 billion deal, which was announced in May. As a result, the Stratasys board of directors announced it would consider strategic alternatives.
Desktop Metal CEO Ric Fulop said after the cancellation that his company will remain independent and is not for sale. He said he was disappointed that Stratasys shareholders did not approve the merger. A majority of the company’s own shareholders had voted in favor.
Desktop Metal Remains Focused on Path to Profitability After Preliminary Tally Shows Stratasys Shareholders Did Not Approve the Merger Agreement
•While Desktop Metal stockholders voted to approve the merger agreement, Stratasys announced its stockholders – faced with two…
— Ric Fulop 🇺🇦 (@ricfulop) September 28, 2023
According to Stratasys’ board of directors, the rejection reopened all options to increase shareholder value. Other strategic options, such as mergers or a sale, would now be examined.
Previously, competitor 3D Systems had proposed an alternative merger to Stratasys, which 3D Systems said would have offered greater value to shareholders. Whether this will now become an issue again remains to be seen.