Nikon Corp. agreed to buy SLM Solutions Group AG in a deal that values the German 3-D printing-machine maker and perennial takeover target at about 600 million euros ($597 million).
(Bloomberg) — Nikon Corp. agreed to buy SLM Solutions Group AG in a deal that values the German 3-D printing-machine maker and perennial takeover target at about 600 million euros ($597 million).
The Japanese technology company is offering 20 euros for each share of SLM, representing a premium of about 84% over the three-month average share price, according to a statement that confirmed an earlier report by Bloomberg News. SLM surged as much as much as 74% in Frankfurt trading.
Nikon, best known for its cameras, has secured 61.1% of SLM Solutions’ shares via a planned capital increase as well as commitments from large shareholders Elliott Investment Management, Ena Investment Capital LLP and SLM founder Hans-Joachim Ihde, it said.
For Elliott, the deal ends its six-year investment in SLM. The hedge fund, led by billionaire activist investor Paul Singer, bought its stake in a bet that General Electric Co. would raise its takeover bid for SLM.
GE, which had bid 38 euros per SLM share, eventually abandoned its offer in 2016 and bought a rival company instead. Since then, Elliott has supported several capital increases by SLM to fund staff hires as well as research and development.
For Nikon, the acquisition boosts its additive manufacturing capabilities.
“We are focused on digital manufacturing as a growth driver and will create value through the promising market of metal additive manufacturing,” said Toshikazu Umatate, the chief executive officer of Nikon. “This acquisition will be key to growing our digital manufacturing business.”
SLM’s powder bed fusion technology is geared toward production of high-performance components used in space rockets, aircraft engines and luxury sports cars.
Tokyo-based Nikon makes cameras and equipment for semiconductor machinery, optical measuring gear and precision instruments, as well as a 3-D metal modeling machine dubbed the “Lasermeister.”
SLM has long been seen as a takeover target. After GE’s foray, US rival Desktop Metal Inc. last year held talks about a potential takeover of the German company before deciding not to proceed, Bloomberg News reported at the time.
SLM reiterated in May that it aims to boost revenue by a third in 2022 to at least 100 million euros and that it plans to become profitable in the second half of this year. Shares of SLM have fallen 34% in Frankfurt this year.
(Updates with share reaction in second paragraph.)
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