An initial vote count at Stratasys’ Extraordinary General Meeting of Shareholders on September 28th, 2023, indicated that Stratasys shareholders had not approved the terms of the previously announced merger with Desktop Metal Inc. Although Desktop Metal’s shareholders had approved the deal during the company’s own shareholder meeting, the merger agreement is now terminated.
Stratasys announced it would begin a comprehensive process to maximise shareholder value immediately. Potential alternatives to be explored or evaluated include a strategic transaction, potential merger, business combination, or sale, the company added.
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“We have decided to undertake a comprehensive and thorough review of all available strategic alternatives,” shared 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 maximise value for all Stratasys shareholders.”
Desktop Metal reported that it remains focused on its path to profitability, with continued improvements in non-GAAP gross margins, operating expenses, adjusted EBITDA, and operating cash flow expected to result in adjusted Q4 EBITDA profitability.
Ric Fulop, Founder and CEO of Desktop Metal stated, “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.”