Stratasys Receives Equity Investment from Fortissimo Capital

Stratasys Ltd. announces that Fortissimo Capital, an Israeli private equity fund investing in technology and industrials, has entered into an agreement to invest $120 million in the company, acquiring approximately 14% of Stratasys’ issued and outstanding ordinary shares through a direct purchase of 11,650,485 newly issued ordinary shares at $10.30 per share, reflecting a premium of 10.6% over the closing market price on January 31, 2025. Prior to this transaction, Fortissimo held approximately 1.5% of Stratasys’ issued and outstanding ordinary shares.

With this transaction, Fortissimo will hold approximately 15.5% of Stratasys’ issued and outstanding ordinary shares. The terms of the agreement also include an 18-month lock-up, as well as customary standstill provisions, subject to certain caveats specified below.

Fortissimo is investing in Stratasys with a long-term commitment at a premium valuation. Stratasys 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.

“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,” says Dr. Yoav Zeif, director and chief executive officer of Stratasys. “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.”

In connection with this investment, Yuval Cohen, founding and managing partner of Fortissimo, will be appointed to the Stratasys board of Directors at the closing of the transaction, replacing a Stratasys director to be named at that time. Cohen brings more than 30 years of financial and leadership experience.

“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,” says Cohen. 

Investment Details

The parties expect the transaction to close during the second quarter of 2025, subject to review by the Committee on Foreign Investment in the United States (CFIUS).

In connection with the transaction, Stratasys’ Boabd will exempt Fortissimo from Stratasys’ limited duration shareholder rights plan and Fortissimo will be subject to certain standstill undertakings, including that: (a) Fortissimo has the right to acquire up to 24.99% of the Stratasys issued and outstanding ordinary shares, but will be limited to 20% of the voting power in Stratasys; and (b) Fortissimo shall be permitted to conduct a tender offer for the purchase of at least 15% of the issued and outstanding ordinary shares provided that it brings their holding to at least 35% of the Stratasys issued and outstanding ordinary shares. For such tender offer to close, it would require an advisory vote of the unaffiliated shareholders.

In the event Fortissimo holds 20% of Stratasys' issued and outstanding ordinary shares, then, at the request of Fortissimo, Fortissimo is entitled to designate an additional nominee, bringing their Board representation to two directors (subject to meeting certain qualifications).

With the exception of Fortissimo, the existing terms of the limited duration shareholder rights plan remain the same for all Stratasys shareholders. The rights generally will become exercisable only if an entity, person or group acquires beneficial ownership of 15% or more of Stratasys’ outstanding ordinary shares in a transaction not approved by the Company’s Board.

Sources: Press materials received from the company and additional information gleaned from the company’s website.

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