Nano Dimension offers to acquire Stratasys for $18 a share (update)

Update 9:05pm: Updates with Stratasys comment.

Nano Dimension (NASDAQ:NNDM) offered to acquire rival 3D printer maker Stratasys (NASDAQ:SSYS) for $18 a share in cash. Stratasys surged 14% in after hours trading. Nano Dimension fell 6.5%.

Nano Dimension (NNDM) has held "constructive, informal" talks with the Stratasys (SSYS) regarding the non-binding offer and the merits of a combination, according to a statement. NNDM said in a letter to SSYS's board that it's prepared to complete due diligence and negotiate a definite agreement within 30 days.

Stratasys (SSYS) confirmed that it received the unsolicited bid and said its board will carefully review the proposal and determine what action is in the best of the company and its shareholders, according to a statement late Thursday.

Nano Dimension's has been Stratasys's (SSYS) largest shareholder since July 2022 and currently owns a 13.7% stake on a fully diluted basis. NNDM said the offer represents a 36% premium to Stratasys's closing price on March 1. The offer represents a 29% premium to SSYS closing price on Thursday.

"We are highly confident in the merits of the proposed transaction and we strongly believe the offer represents an attractive proposal for all stakeholders of the company," Nano Dimension wrote in its letter to the SSYS board.

Stratasys (SSYS) didn't immediately respond to Seeking Alpha request for comment.

The offer comes as Nano Dimensions has been engaged in a fight with it largest shareholder Murchinson, which is trying to get board seats and seeks the ouster of the company's Chairman Yoav Stern. Earlier Thursday influential proxy service ISS recommended that shareholders vote to support all of Murchinson's board nominees and removal of chairman Yoav Stern.

Last month Nano Dimension (NNDM) said it hired Lazard Ltd. as an advisor for strategic mergers & acquisitions and to address a challenge from Murchinson. Lazard has been working with the company on potential transformative acquisitions and "growth maximization strategies."

Nano Dimension (NNDM) has a market cap of $770 million, while Stratasys (SSYS) is valued at $940 million.

In July Stratasys (SSYS) adopted a limited shareholder rights plan or "poison pill" shortly after Nano Dimension (NNDM) disclosed that it had a acquired a 12% stake in SSYS. The poison pill would go into effect when a person or group acquired 15% or more of the company's stock, with the pill set to expire July 24.