Stratasys (NASDAQ:SSYS) Raises over $ 400 Million in Secondary Offering
NEW YORK – Stratasys, Inc. (NASDAQ:SSYS), a manufacturer of 3D printers, announced that they had raised more than $ 402 million in a secondary offering on Friday. The offering of 4.5 million shares was priced at $ 93 per share. With the offering, the company’s market capitalization rose to $ 3.6 billion.
The company, which headquartered in Rehovot, Israel, was founded in 1989 in Endina, Minnesota, manufactures 3D printers and 3D production systems for rapid prototyping and direct digital manufacturing solutions. Engineers in particular use Stratasys systems to build complex models in a variety of materials and the company services manufacturing customers in the automotive, aerospace, industrial, recreational, electronic, medical, and consumer product sectors.
Prior to the announcing the secondary offering last Monday, shares in Stratasys were trading near their all-time high of $ 110.26, which was reached earlier this month. With the offering, shares in Stratasys closed down 5 percent at $ 92.32. The company, which had $ 148.1 million in cash at the end of June, plans to use the use the profits from the share sale cover acquisitions, capital expenses, and working capital.
The offering could help to speed up Stratasys’ acquisition plans. In June, the company acquired MarkerBot; the makers of 3D printers knock down kits, for $ 403 million in shares. However, that price could increase by up to $ 200 million if certain milestones were met during the integration process.
Analysts estimate that the market for 3D printing has grown to more than $ 2 billion in 2012 and is projected to surpass $ 5 billion by 2015. According to the Wohlers Report 2013, the market for 3D printing has grown more than 27 percent since 2010. According to Terry Wohlers, innovation continues to accelerate with demonstrations of printing food and living tissue already underway. Tech companies are interested in harnessing this technology.
As the market for 3D manufacturing continues to expand, it is a fair bet that Stratasys’ share price will regain the pre-offering momentum, when shares we up more than 30 percent year-to-date. Growth is set to accelerate in 2014 as a number of critical patents are set to expire. Other companies to watch include 3D Systems (NYSE:DDD), and RedEye.