Fortissimo bets big on Stratasys with $120 million investment
Fortissimo bets big on Stratasys with $120 million investment
Private equity firm acquires 14% to raise its stake to 15.5%, with the deal valuing shares 10.6% above Nasdaq’s closing price.
Israeli private equity fund Fortissimo is investing $120 million in 3D printing company Stratasys, acquiring 11.65 million shares at $10.30 per share—10.6% above the closing price on Friday on Nasdaq.
Fortissimo already holds a 1.5% stake in Stratasys, which it acquired earlier. Following the new investment, its total holding will reach 15.5%. Yuval Cohen, the fund’s founder and managing partner, will serve as a director on Stratasys’s board. The deal also gives Fortissimo the option to increase its stake to 24.99%. Additionally, the fund will be able to raise its holding through a tender offer, potentially reaching up to 35%, which would entitle it to appoint an additional director.
“Fortissimo’s investment underscores confidence in our leadership and performance, our ability to deliver solutions that solve customer needs and our long-term growth potential,” said Dr. Yoav Zeif, Director and Chief Executive Officer of Stratasys.
In recent years, three companies have attempted to acquire Stratasys, the most prominent being Nano Dimension, which offered $20 per share—nearly double the price Fortissimo is now paying. The other suitors were D3 Systems and Desktop Metal.
Stratasys shares fell to a low of $6.90 in September but have since recovered, rising about 40%.
Fortissimo is no stranger to the digital printing sector. In December 2005, it acquired 55% of Nur Macroprinters for $12 million and sold its stake two years later to HP for $117 million. The fund also previously owned Kornit Digital, which specializes in fabric printing technologies.
“We believe in the future of additive manufacturing and are confident in Stratasys’ leading role in shaping the industry. We have long respected their history of solving customers’ critical manufacturing challenges and are confident they exemplify the necessary and strategic approach to fulfill the potential of 3D printing,” said Mr. Cohen. “We look forward to being a part of Stratasys’ next chapter as we collaborate with its strong management team to build on the Company’s fundamental strengths to the benefit of the Company’s stakeholders.”
