Filed by Desktop Metal, Inc.
(Commission File No.: 001-38835)
Pursuant to Rule 425 of the Securities Act
of 1933
and deemed filed pursuant to Rule 14a-12
under the Securities Exchange Act of 1934
Subject Company: Desktop Metal, Inc.
(Commission File No.: 001-38835)
Date: September 21, 2023
The following press release was released by Desktop Metal, Inc.
on September 21, 2023.
Leading Independent Proxy Advisory Firm ISS
Recommends Desktop Metal Stockholders Vote “FOR” the Pending Merger with Stratasys
Desktop Metal urges stockholder to vote "FOR"
the pending merger
BOSTON--(BUSINESS
WIRE)—Desktop Metal, Inc. (NYSE: DM), a global leader
in additive manufacturing technologies for mass production, today announced that leading independent proxy advisory firm Institutional
Shareholder Services (ISS) recommends that stockholders vote “FOR” the merger with Stratasys Ltd. (Nasdaq: SSYS) at the upcoming
special meeting of Desktop Metal stockholders.
In its report dated September 20,
2023, ISS stated: “Given the opportunity to become part of a larger entity, the potential cost synergies of the proposed combination,
and the share form of consideration, which enables DM shareholders to participate in the upside of the combined company, support for the
transaction is warranted.” 1
Desktop Metal issued the following
statement:
We are pleased that
ISS supports our board’s unanimous recommendation that shareholders vote “FOR” the merger with SSYS. As we first stated
in May, the combination of Stratasys and Desktop Metal unites the polymer strengths of Stratasys with the complementary industrial mass
production leadership of Desktop Metal and our breakthrough technologies, such as binder jetting. The combined company will create the
first Additive Manufacturing company that will be at scale — targeted to generate more than $1.6 billion in revenue and more than
$300 million of adjusted EBITDA in 2026 at base case, for a targeted pro forma margin of 20%. Together, we expect to be able to offer
customers end-to-end solutions from designing, prototyping, and tooling to mass production and aftermarket operations across the entire
manufacturing lifecycle.
The special meeting will be
held virtually on September 28, 2023 at 9:00 a.m. Eastern Time. Desktop Metal stockholders of record at the close of business
on July 31, 2023 will be entitled to vote at the special meeting.
Desktop Metal stockholders who need
assistance in completing the proxy card, need additional copies of the proxy materials or have questions regarding the upcoming special
meeting may contact Desktop Metal’s proxy solicitor, D.F. King & Co., Inc., by phone at (877) 478-5045 or (212) 269-5550
or by email at DM@dfking.com.
1 Permission to use quote neither sought nor obtained.
About Desktop Metal
Desktop Metal (NYSE:DM) is driving Additive
Manufacturing 2.0, a new era of on-demand, digital mass production of industrial, medical, and consumer products. Our innovative 3D printers,
materials, and software deliver the speed, cost, and part quality required for this transformation. We’re the original inventors
and world leaders of the 3D printing methods we believe will empower this shift, binder jetting and digital light processing. Today,
our systems print metal, polymer, sand and other ceramics, as well as foam and recycled wood. Manufacturers use our technology worldwide
to save time and money, reduce waste, increase flexibility, and produce designs that solve the world’s toughest problems and enable
once-impossible innovations. Learn more about Desktop Metal and our #TeamDM brands at www.desktopmetal.com.
Use of Non-GAAP Financial Measures
This communication contains non-GAAP financial measures, including
Adjusted EBITDA. In addition to Desktop Metal's results determined in accordance with GAAP, Desktop Metal's management uses this non-GAAP
financial information to evaluate the Company's ongoing operations and for internal planning and forecasting purposes. The presentation
of these financial measures is not intended to be considered in isolation, or as a substitute for, or superior to, the financial information
prepared and presented in accordance with GAAP. We believe that this non-GAAP financial information, when taken collectively, may be helpful
to investors in assessing Desktop Metal's operating performance; however, investors are cautioned that there are material limitations
associated with the use of non-GAAP measures as an analytical tool. Our computation of these measures, especially Adjusted EBITDA, may
be different from computations used by other companies, limiting their usefulness for comparative purposes. We compensate for these limitations
by relying primarily on our GAAP results and using Adjusted EBITDA on a supplemental basis. Investors should not rely on any single financial
measure to evaluate our business. Desktop Metal has not provided a reconciliation of Adjusted EBITDA targets to net income because estimates
of all of the reconciling items cannot be provided without unreasonable efforts.
Forward-Looking Statements
This communication contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995.
Such forward-looking statements include statements relating to the
proposed transaction between Stratasys and Desktop Metal, including statements regarding the benefits of the transaction and the anticipated
timing of the transaction, and information regarding the businesses of Stratasys and Desktop Metal, including expectations regarding outlook
and all underlying assumptions, Stratasys’ and Desktop Metal’s objectives, plans and strategies, information relating to operating
trends in markets where Stratasys and Desktop Metal operate, statements that contain projections of results of operations or of financial
condition and all other statements other than statements of historical fact that address activities, events or developments that Stratasys
or Desktop Metal intends, expects, projects, believes or anticipates will or may occur in the future. Such statements are based on management’s
beliefs and assumptions made based on information currently available to management. All statements in this communication, other than
statements of historical fact, are forward-looking statements that may be identified by the use of the words “outlook,” “guidance,”
“expects,” “believes,” “anticipates,” “should,” “estimates,” and similar expressions.
These forward-looking statements involve known and unknown risks and uncertainties, which may cause Stratasys’ or Desktop Metal’s
actual results and performance to be materially different from those expressed or implied in the forward-looking statements. Factors and
risks that may impact future results and performance include, but are not limited to those factors and risks described in Item 3.D “Key
Information - Risk Factors”, Item 4 “Information on the Company”, and Item 5 “Operating and Financial Review
and Prospects” in Stratasys’ Annual Report on Form 20-F for the year ended December 31, 2022 and Part 1, Item
1A, “Risk Factors” in Desktop Metal’s Annual Report on Form 10-K for the year ended December 31, 2022, each
filed with the Securities and Exchange Commission (the “SEC”), and in other filings by Stratasys and Desktop Metal with the
SEC. These include, but are not limited to: the ultimate outcome of the proposed transaction between Stratasys and Desktop Metal, including
the possibility that Stratasys or Desktop Metal shareholders will reject the proposed transaction; the effect of the announcement of the
proposed transaction on the ability of Stratasys and Desktop Metal to operate their respective businesses and retain and hire key personnel
and to maintain favorable business relationships; the timing of the proposed transaction; the occurrence of any event, change or other
circumstance that could give rise to the termination of the proposed transaction; the ability to satisfy closing conditions to the completion
of the proposed transaction (including any necessary shareholder approvals); other risks related to the completion of the proposed transaction
and actions related thereto; changes in demand for Stratasys’ or Desktop Metal’s products and services; global market, political
and economic conditions, and in the countries in which Stratasys and Desktop Metal operate in particular; government regulations and approvals;
the extent of growth of the 3D printing market generally; the global macro-economic environment, including headwinds caused by inflation,
rising interest rates, unfavorable currency exchange rates and potential recessionary conditions; the impact of shifts in prices or margins
of the products that Stratasys or Desktop Metal sells or services Stratasys or Desktop Metal provides, including due to a shift towards
lower margin products or services; the potential adverse impact that recent global interruptions and delays involving freight carriers
and other third parties may have on Stratasys’ or Desktop Metal’s supply chain and distribution network and consequently,
Stratasys’ or Desktop Metal’s ability to successfully sell both existing and newly-launched 3D printing products; litigation
and regulatory proceedings, including any proceedings that may be instituted against Stratasys or Desktop Metal related to the proposed
transaction; impacts of rapid technological change in the additive manufacturing industry, which requires Stratasys and Desktop Metal
to continue to develop new products and innovations to meet constantly evolving customer demands and which could adversely affect market
adoption of Stratasys’ or Desktop Metal’s products; and disruptions of Stratasys’ or Desktop Metal’s information
technology systems.
These risks, as well as other risks related to the proposed transaction,
are included in the registration statement on Form F-4 and joint proxy statement/prospectus that has been filed with the Securities
and Exchange Commission (“SEC”) in connection with the proposed transaction. While the list of factors presented here is,
and the list of factors to be presented in the registration statement on Form F-4 are, considered representative, no such list should
be considered to be a complete statement of all potential risks and uncertainties. For additional information about other factors that
could cause actual results to differ materially from those described in the forward-looking statements, please refer to Stratasys’
and Desktop Metal’s respective periodic reports and other filings with the SEC, including the risk factors identified in Stratasys’
and Desktop Metal’s Annual Reports on Form 20-F and Form 10-K, respectively, and Stratasys’ Form 6-K reports
that published its results for the quarter ended June 30, 2023, which it furnished to the SEC on August 9, 2023, and Desktop
Metal’s most recent Quarterly Reports on Form 10-Q. The forward-looking statements included in this communication are made
only as of the date hereof. Neither Stratasys nor Desktop Metal undertakes any obligation to update any forward-looking statements to
reflect subsequent events or circumstances, except as required by law.
No Offer or Solicitation
This communication is not intended to and shall not constitute an offer
to buy or sell or the solicitation of an offer to buy or sell any securities, or a solicitation of any vote or approval, nor shall there
be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification
under the securities laws of any such jurisdiction. No offering of securities shall be made, except by means of a prospectus meeting the
requirements of Section 10 of the Securities Act.
Important Additional Information About the Transaction and Where
to Find It
In connection with the proposed transaction,
Stratasys filed with the SEC a registration statement on Form F-4 (SEC File No. 333-272759) that includes a joint proxy statement
of Stratasys and Desktop Metal and that also constitutes a prospectus of Stratasys. Each of Stratasys and Desktop Metal may also file
other relevant documents with the SEC regarding the proposed transaction. The registration statement was declared effective by the SEC
on August 25, 2023. Stratasys and Desktop Metal filed the definitive joint proxy statement/prospectus with the SEC on August 28,
2023. The definitive joint proxy statement/prospectus was mailed to shareholders of Stratasys and stockholders of Desktop Metal on or
around August 28, 2023. This document is not a substitute for the definitive joint proxy statement/prospectus or any other document
that Stratasys or Desktop Metal may file with the SEC. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT, THE
JOINT PROXY STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS THAT MAY BE FILED WITH, OR FURNISHED TO, THE SEC, AS WELL AS ANY
AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY CONTAIN OR WILL
CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Investors and security holders are able to obtain free copies of the registration
statement and definitive joint proxy statement/prospectus and other documents containing important information about Stratasys, Desktop
Metal and the proposed transaction through the website maintained by the SEC at http://www.sec.gov. Copies of the documents filed
with, or furnished, to the SEC by Stratasys are available free of charge on Stratasys’ website at https://investors.stratasys.com/sec-filings.
Copies of the documents filed with the SEC by Desktop Metal are available free of charge on Desktop Metal’s website at https://ir.desktopmetal.com/sec-filings/all-sec-filings.
Investor Relations
Jay Gentzkow
(781) 730-2110
jaygentzkow@desktopmetal.com
Media Relations
Sarah Webster
sarahwebster@desktopmetal.com
(313) 715-6988
Desktop Metal (NYSE:DM)
Historical Stock Chart
Von Apr 2024 bis Mai 2024
Desktop Metal (NYSE:DM)
Historical Stock Chart
Von Mai 2023 bis Mai 2024