Nano Dimension Acquires Markforged and Positions Itself as a Market Leader

Last night, Israeli manufacturer Nano Dimension announced its intention to acquire Markforged, an American 3D printing solution provider, renowned in particular for its composite machines. Nano Dimension has agreed to buy all the outstanding shares of the American company, in an all-cash transaction, for $5 per share. The two companies will hold a conference call later today to discuss the transaction with investors.

This is inevitably important news for the market, and a particularly strong announcement from Nano Dimension. The manufacturer is clearly demonstrating its desire to dominate the market, a few months after the announcement of its intended takeover of Desktop Metal. This merger will bring cumulative sales to $340 million by 2023.

Nano Dimension specializes in additive manufacturing for electronics

When you think of Nano Dimension, you’re bound to think of the whole saga that unfolded last year with Stratasys. The two giants have offered us a few twists and turns concerning potential mergers. Just imagine if one were to acquire the other: the additive manufacturing market would have an undisputed leader, with an extremely varied portfolio. And that’s just what we’re beginning to see with Nano Dimension.

This manufacturer began by specializing in micro-printing, notably for the electronics sector. A niche market which, while prosperous, was not enough for the Israeli manufacturer. After announcing that it would be acquiring Desktop Metal by the end of 2024 – and its entire portfolio – it turned to Markforged. A very interesting acquisition, given the history of Desktop Metal and Markforged.

Nano Dimension, the New Market Leader?

The transaction is a strategic one for Nano Dimension, as Markforged will post sales of $93.8 million in 2023, with a gross margin of 47.4%. Once completed, the Israeli company is expected to record $475 million in cash and cash equivalents, including marketable securities.

Yoav Stern, CEO and board member of Nano Dimension, says: “In combining with Markforged, Nano Dimension is taking bold action in its journey towards becoming a digital manufacturing leader and being a foundational pillar of Industry 4.0. Markforged is an exceptional company with innovative AM materials and solutions for true production […] This is all the more substantial when we think about the anticipated closing of our deal with Desktop Metal. We believe the combination of Nano Dimension, Desktop Metal, and Markforged further strengthens our unique opportunity in creating value for our shareholders, customers, and employees as we work to deliver profitable growth, exceptional services, and notable career development opportunities.”

Nano Dimension will therefore be able to count on Markforged’s expertise in material extrusion, with different materials including composites. The aim is to meet the ever-more demanding needs of manufacturers seeking performance, weight reduction and specific mechanical properties.

On the metal side, Nano Dimension will also be relying on the American company’s tried-and-tested extrusion and binder jetting solutions, addressing a very broad market, not to mention Desktop Metal’s machines. As you can see, this is a takeover that is sure to change the landscape of additive manufacturing, and the next few months are going to be very exciting!

Nano Dimension will be able to rely on Markforged’s polymer and metal FFF solutions, as well as Binder Jetting (photo credits: Markforged)

Shai Terem, Managing Director, President and Board Member of Markfoged, concludes, “We’re excited to bring together our pioneering, complementary product portfolios that will further enhance our ability to serve our customers in high-growth industries with a more complete offering of highly innovative solutions used on the factory floor. Not only is our product offering unique, but together we will have the scale and balance sheet strength to become an even more trusted partner to our customers, who are leaders across several industries. We look forward to working with Nano Dimension to join great companies and their devoted teams that can serve our stakeholders to the maximum extent possible.”

Of course, completion of the transaction is subject to certain conditions, including the approval of Markforged shareholders and the requisite regulatory authorizations. If all goes well, it should be signed in the first quarter of 2025. Click HERE to access the official press release.

What do you think of the decision by Nano Dimension to acquire Markforged? Let us know in a comment below or on our LinkedIn, Facebook, and Twitter pages! Don’t forget to sign up for our free weekly newsletter here for the latest 3D printing news straight to your inbox! You can also find all our videos on our YouTube channel.