Why Is Stratasys (SSYS) Stock Up 9% Today?


  • Stratasys (SSYS) stock is rising on a merger offer from 3D Systems (DDD).
  • DDD wants to acquire SSYS with a mix of cash and shares.
  • This would see SSYS stock investors own 40% of the combined company.
SSYS Stock - Why Is Stratasys (SSYS) Stock Up 9% Today?

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Stratasys (NASDAQ:SSYS) stock is taking off on Friday after the 3D printing company received an offer to combine with 3D Systems (NYSE:DDD).

This combination would see 3D Systems use a mixture of cash and stock to facilitate its merger with Stratasys. That includes issuing new shares of DDD stock in exchange for current shares of SSYS stock.

The offer would see shareholders of SSYS stock receive $7.50 in cash and 1.2507 shares of DDD stock in exchange for each share they own. This represents a price of about $25 per share, which is a 70% premium for Stratasys investors. It would also see them own 40% of the combined company.

Jeffrey Graves, President and CEO of 3D Systems, said the following about the merger in a news release:

“The combination of 3D Systems and Stratasys is simply the best outcome for the shareholders of both companies […] We feel strongly that now is the time for all parties to recognize the overwhelming logic of our two businesses coming together.”

What About the Desktop Metal Merger?

3D Systems’ offer for Stratasys also discusses the company’s planned acquisition of Desktop Metal (NYSE:DM). It claims the offer being made today gives SSYS stockholders at least as much deal certainty as the planned Desktop Metal deal. The company also argues it can get regulatory approval in a timely manner.

SSYS stock is up 9.1%, DDD stock is up 8% and DM stock is up 3.2% as of Friday morning following the merger offer announcement.

Investors on the lookout for even more stock market news will want to keep reading!

InvestorPlace is home to all of the most recent stock market coverage that traders need to know about on Friday! Among that is what’s happening with shares of Nio (NYSE:NIO), SentinelOne (NYSE:S) and Kiora Pharmaceuticals (NASDAQ:KPRX) stock today. All of that news is ready to go at the links below!

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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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