Fortissimo to invest $120m in Stratasys for 14% stake

Israeli private equity firm Fortissimo has entered into an agreement to invest in Israeli polymer 3D solutions company Stratasys (Nasdaq: SSYS). Fortissimo, managed by is founder Yuval Cohen will invest $120 million at $10.30 per share, reflecting a 10.6% premium on the closing price on Wall Street on Friday. This is in contrast to the average 10% discount on similar PIPE deals. Prior to the latest deal Fortissimo held a 1.5% stake in Stratasys and will now hold a 15.5% stake. Cohen will join the company’s board of directors.

The deal is being conducted at a company valuation of $740 million for Stratasys, which its current market cap on Nasdaq is $665 million. The deal includes a period of 18 months in which the shares would be blocked. Stratasys said it expects, “This partnership to enhance shareholder value, support the continued execution of Stratasys’ strategy to drive growth and further strengthen the Company’s balance sheet as it seeks to capture inorganic value-creation opportunities in the additive manufacturing industry.”

Valuations in the 3D printer market have fallen significantly in recent years, and this could create acquisition opportunities for Stratasys, which even before the Fortissimo investment had about $144 million in cash and no debt. In the past, it tried to acquire Desktop Metal from the US in a stock deal, but Stratasys’ shareholders opposed the deal, sending the company to examine strategic options for delivering value to shareholders. About two years ago, at the same time as the attempt to acquire Desktop Metal, Stratasys was the focus of a takeover attempt by two companies in the industry – Israel’s Nano Dimension and US company 3D Systems. The bids valued Stratasys at $1.6-1.7 billion, far from its current valuation.

Not Fortissimo’s first investment in digital printing

Fortissimo already has experience in investments in digital printing. In the past it has achieved successful exits from Nur Macroprinters and Kornit Digital, and the private equity firm has also invested in deep tech companies Triton and Velox. Other prominent investments by Fortissimo include telco Cellcom, food company Sugat and software company Priority. Among its most outstanding exits was carbonated drink company Sodastream.

Stratasys CEO Dr. Yoav Zeif said, “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. Fortissimo is an experienced private equity investor with a growth focus, deep understanding of our business and a proven track record of investment in private and public technology companies. We are excited to partner with Fortissimo and believe their meaningful investment and partnership-oriented approach will enable us to drive additional long-term value for all shareholders.”

Cohen added, “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. 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.”

The deal is expected to close in the second quarter of 2025 subject to regulatory approval. As part of the deal, Stratasys’ board of directors will exclude Fortissimo from the “poison pill” mechanism it created in an attempt to fend off past takeover attempts. Fortissimo will be able to increase its holding, and if it reaches 20%, it will be able to request a second director, in addition to Cohen.

Published by Globes, Israel business news – en.globes.co.il – on February 3, 2025.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2025.