4 big deal reports: 3D Systems' rival offer for Stratasys

Here is your Pro Recap of four head-turning deal dispatches you may have missed this week: a rival acquisition deal for Stratasys by 3D Systems, and merger news out of Dechra Pharmaceuticals-EQT, LL Flooring-Cabinets To Go, and Arlington Asset Investment-Ellington Financial.

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Stratasys stock jumps after unsolicited buyout offer from 3D Systems

Stratasys (NASDAQ:SSYS) shares jumped more than 11% on Friday after it announced it had received an unsolicited cash-and-stock offer from 3D Systems (NYSE:DDD) to acquire the company: $7.50 in cash and 1.2507 newly issued 3D Systems shares per ordinary Stratasys share.

Last week, the company said it will merge with Desktop Metal (NYSE:DM) in a $1.8 billion all-stock transaction. After the agreement was signed the company received another unsolicited proposal by Nano Dimension (NASDAQ:NNDM) to buy 53% to 55% of its outstanding shares (Nano Dimension already owns 14.2% of Stratasys), which Stratasys' board rejected.

The board said it will carefully review the 3D Systems proposal.

After the Desktop Metal-Stratasys agreement was signed, Craig Hallum analysts said last week that the development would be bad news for 3D Systems, noting 3D has a high customer concentration to Align (NASDAQ:ALGN) (23% customers in FY22), which has a commercial partnership with Desktop Metal for restorative dental. Stratasys has technology that competes with 3D Systems for aligners.

Both 3D Systems and Desktop Metal gained more than 16% this week.

Dechra Pharmaceuticals agrees to EQT’s £4.5B offer

Dechra Pharmaceuticals (LON:DPH) shares surged over 7% on Friday after it agreed to the Swedish private equity firm EQT’s £4.46B bid (£1 = $1.25), representing the biggest take-private deal in Europe so far this year.

The offer, valued at 3,875p per share, falls short of EQT’s initial indicative proposal of 4,070p per share in April. Dechra deemed the terms to be "fair and reasonable" and plans to unanimously recommend the proposal to its shareholders.

LL Flooring surges on Cabinets To Go’s takeout offer

LL Flooring (NYSE:LL) shares gained more than 8% on Wednesday following the company’s confirmation of an unsolicited proposal from Cabinets To Go, a subsidiary of F9 Brands, to acquire all outstanding shares of the company for $5.76 per share in cash.

Arlington Asset Investment surges 47% on merger with Ellington Financial

Arlington Asset Investment (NYSE:AAIC) shares jumped more than 47% on Tuesday after agreeing to be bought by Ellington Financial (NYSE:EFC).

The estimated pro forma market capitalization of the combined company would exceed $1B. Ellington Financial stockholders are expected to own around 85% of the combined company’s stock, while Arlington stockholders are expected to own approximately 15%.

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