Stratasys Ltd. confirmed that it has received an “unsolicited” buyout proposal from 3D Systems Corp. The proposal values Stratasys’ stock at a 20.4% premium to Monday’s closing price, making it tempting for the company to consider the offer in light of its current merger deal with Desktop Metal Inc. Although Stratasys said it will carefully review the new bid, the company pointed out that its approval of the previously announced merger deal with Desktop Metal Inc. remains unchanged.
No Action Required From Shareholders Yet
Stratasys reassured shareholders that they do not need to take any action at this time with respect to the 3D Systems revised proposal. As a result of the news, Stratasys’ shares shot up 12.6% in premarket trading which could put the company on track to open at a 10-month high. Meanwhile, 3D Systems’ stock gained 1.7%, and Desktop Metal’s shares shed 1.1%. Overall, investors are watching closely to see how the situation unfolds.
The Market Reacts
Futures for the S&P 500 edged up 0.2% after the news about Stratasys came out, giving momentum to stocks during premarket trading. It remains to be seen how the market will react once the opening bell rings, but analysts predict this development may present an opportunity for savvy investors.