Nano Dimension Buys Stratasys, Bristol Myers’s Shopping Spree, Apple Gets a ‘No’
Another acquisition for Bristol Myers, another acquisition offer from Nano Dimension, and Apple's Watch woes.
The holiday shopping season isn’t over yet. A 3-D printing company and a major pharmaceuticals maker announced post-Christmas acquisitions Tuesday morning.
Bristol Myers makes another buy
Last Friday, Bristol Myers Squibb Co. (NYSE: BMY | BMY Price Prediction) announced that it will acquire drug developer Karuna Therapeutics Inc. (NASDAQ: KRTX) for $330 per share in cash. Tuesday morning, Bristol Myers announced that it has agreed to acquire RayzeBio Inc. (NASDAQ: RYZB), a radiopharmaceutical developer, for $62.50 per share. The all-cash deal values RayzeBio at $3.6 billion net of around $500 million in cash.
Bristol Myers’s offer represents a premium of 104.4% to RayzeBio’s Friday closing price of $30.57. Bristol Myers said the acquisition, which is expected to close in the first quarter, will reduce adjusted EPS by $0.13 per share in 2024. The Karuna acquisition will reduce 2024 earnings by around $0.30 per share according to Bristol Myers.
Both acquisitions will be financed with new debt. Bristol Myers had $7.7 billion in cash and other liquidity at the end of the third quarter. The company also had $32.2 billion in long-term debt.
RayzeBio stock traded up by about 97% at $60.25 in Tuesday’s premarket session. The stock’s 52-week range is $17.95 to $31.11. The high was posted last Friday.
Bristol Myers stock traded up about 0.2% early Tuesday at $52.39 in a 52-week range of $48.25 to $75.18. (The 7 Highest Yielding ‘Strong Buy’ Dividend Kings You Can Buy and Hold Forever)
Nano Dimension pushes harder on Stratasys
Israel-based 3D printing firm Nano Dimension Ltd. (NASDAQ: NNDM) is tired of waiting for Stratasys Ltd. (NASDAQ: SSYS) to break its silence. Since late September, when Stratasys announced a strategic review, including a possible sale of the company, Nano Dimension has had its hand raised.
Nano already owns 14% of Stratasys and is its largest shareholder. Because Nano is getting the silent treatment, it decided to make public its preliminary offer to acquire Stratasys for $16.50 per share. The price reflects a premium of 40% to Stratasys’s share price at the time of the company’s September announcement of the strategic review.
Stratasys stock closed at $11.75 when the strategic review was announced and closed at $13.11 last Friday. The stock traded up 12.2% in Tuesday’s premarket at $14.71.
Nano Dimension stock traded flat early Tuesday at $2.40 per share in a 52-week range of $2.16 to $3.35.
Apple gets no help
Last week, Apple Inc. (NASDAQ: AAPL) began removing certain models of its Apple Watch from its stores. U.S. Trade Representative Katherine Tai declined to reverse an October ruling that Apple infringed on two Masimo Corp. (NASDAQ: MASI) patents that use light sensors to measure a person’s blood oxygen levels.
While Apple can appeal the ITC’s decision, it had 60 days to comply with the October ruling. That 60-day period ended on December 26.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
