The board of directors of Arcam says that it unanimously recommends that the shareholders of Arcam accept a takeover offer made by GE.

GE Sweden Holdings AB (GE) has announced a public cash offer to the shareholders of Arcam to tender all ordinary shares for a consideration consisting of SEK 285 in cash per share which corresponds to a total offer value of SEK 5,855,776,725. Completion of the offer is conditional upon, amongst other things, GE becoming the owner of more than 90% of the total number of shares in Arcam.

‘In terms of the company’s long-term prospects, the board believes that the demand for the company’s technology for additive manufacturing of aerospace and orthopedic implant products and components will increase dramatically, meaning that the market has favorable long-term growth opportunities,’ said a press release from Arcam. ‘As the market develops, more advanced technology is required, which benefits Arcam. Accordingly, the board believes that the company is very well positioned for the future.

‘However, in assessing the merits of the offer, the board has also considered that the company, on the whole, has limited resources and that the company operates in a demanding and regulated environment with long lead times. Further, the market for additive manufacturing is still rather immature and may become subject to technological leaps that may require substantial investments for Arcam in delivering on its business plan. GE has stated that Arcam’s strategy and offering align to GE’s vision of building its own expertise and capabilities in additive manufacturing to serve customers in the global industrial community. Further, GE has adequate resources in implementing and taking advantage of Arcam’s growth and business opportunities and will provide know-how and expertise to further leverage Arcam’s technology and to forcefully go to market with Arcam’s products and services.’

‘GE intends to maintain Arcam’s current operations and locations,’ said GE. ‘GE believes the locations of all of Arcam’s operations provide strong business, operating and engineering talent as well as government and community support. GE plans to retain and develop Arcam’s current and valuable management and employees. GE further desires to amplify the speed and energy of Arcam’s entrepreneurial culture with GE’s world-class engineering and operational capabilities. GE does not intend to make any material changes for Arcam’s employees, including their terms of employment and the locations of business.’

This story is reprinted from material from Arcam, with editorial changes made by Materials Today. The views expressed in this article do not necessarily represent those of Elsevier.