Techtrendztalk 
Introduction
The world of 3D printing is abuzz with anticipation over the proposed merger between Stratasys and Desktop Metal, two prominent players in the industry. However, this merger has hit a roadblock in the form of opposition from Institutional Shareholder Services (ISS), a leading proxy advisory firm. In this blog post, we’ll delve into the details of this proposed merger, the reasons behind ISS’s opposition, and the potential implications for the 3D printing industry.
The Proposed Merger: Stratasys and Desktop Metal
Stratasys, a veteran in the 3D printing industry, is known for its industrial-grade additive manufacturing solutions. Desktop Metal, on the other hand, has gained recognition for its innovative metal 3D printing technologies. The proposed merger between these two companies aims to create a formidable force in the 3D printing world by combining Stratasys’ experience and Desktop Metal’s cutting-edge technology.
ISS’s Opposition: Concerns and Considerations
ISS, a prominent proxy advisory firm, plays a crucial role in providing recommendations to shareholders on corporate matters, including mergers and acquisitions. ISS’s opposition to the Stratasys-Desktop Metal merger is based on several key concerns:
- Valuation: ISS questions whether the proposed merger undervalues Desktop Metal. They argue that the exchange ratio for Desktop Metal shares in the deal does not adequately reflect the company’s growth prospects and potential.
- Alternative Bidders: ISS has raised the possibility that alternative bidders may be willing to pay a higher price for Desktop Metal, suggesting that shareholders might be missing out on a better deal.
- Process Transparency: ISS has expressed concerns about the transparency of the merger process, particularly regarding the company’s financial advisor’s valuation methodology and potential conflicts of interest.
Implications for the 3D Printing Industry
The 3D printing industry has been experiencing significant growth and innovation in recent years, with applications ranging from aerospace and healthcare to automotive and consumer goods. The proposed merger between Stratasys and Desktop Metal was seen as a potential game-changer that could reshape the competitive landscape.
However, ISS’s opposition introduces uncertainty into the equation. If the merger were to be rejected or delayed, it could impact the strategic plans of both companies and potentially open the door for other players in the industry to make their moves.
Conclusion: A Shifting Landscape
The opposition from ISS to the Stratasys-Desktop Metal merger adds a layer of complexity to the rapidly evolving 3D printing industry. While mergers and acquisitions are common strategies for companies seeking to strengthen their positions, they must navigate not only the financial aspects but also the scrutiny of shareholders and regulatory bodies.
The final outcome of this proposed merger remains uncertain, but what is clear is that the 3D printing industry will continue to evolve, with or without this particular merger. The technology’s potential to revolutionize manufacturing, healthcare, and countless other sectors ensures that it will remain a dynamic and exciting field to watch. As for the Stratasys-Desktop Metal merger, shareholders and industry observers will eagerly await the next developments in this intriguing corporate drama.
Very impressed