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Nano Dimension Announces Intended Acquisition of Desktop Metal

Published on July 3, 2024 by Madeleine P.
Nano Dimension Desktop Metal

The tumultuous merger discussions have once again come to a head. After hearing from Yoav Stern, Nano Dimension’s Chief Executive Officer, last week at RAPID + TCT 2024, it was clear that the company intended to move towards one goal, as he repeatedly stated that consolidation was the only way for the additive manufacturing industry to continue to move forward. Now that has been proven as fact as Nano Dimension has announced its intention to acquire Desktop Metal.

In the announcement, Stern explains, “Our combination with Desktop Metal is another step in Nano Dimension’s evolution to become the leader in digital manufacturing, with capabilities in mass manufacturing for critical industrial applications. We’re excited to join forces with an excellent group of technology leaders, all of whom share our vision for transforming manufacturing to Digital Industry 4.0.” Could this be the final culmination (and possibly most logical conclusion) of a saga lasting over a year for the companies?

The Studio System from Desktop Metal (photo credits: Desktop Metal)

The Acquisition of Desktop Metal by Nano Dimension

In a press release jointly released by Nano Dimension and Desktop Metal, the companies announced that they have entered into a definitive agreement wherein Nano Dimension will acquire all outstanding shares of Desktop Metal. This all-cash transaction will be for $5.50 per share, subject to possible downward adjustments of $4.07 per share.

This represents a 27.3% premium to Desktop Metal’s closing price, as well as a 20.5% to the 30-day VWAP as of July 2nd. This is for a total of approximately $183 million. Although, if the share price decreases, this could go down to about $135 million. Although Desktop Metal stock shares were once worth around $230, given the company has already faced further cost-cutting measures including layoffs this year, the potential benefit of this deal can still be seen.

Transaction expenses are also estimated to be around $11 million, resulting in a decrease of about $0.44 per share. However, Nano Dimension has pledged that if the closing of the transaction extends into 2025 it will provide DM with a $20 million secured loan facility, even if DM does not expect to draw on it.  As it is, the transaction has already been unanimously approved by the Boards of Directors of both companies and thus is expected to close in the fourth quarter of 2024 with Nano Dimension intending to finance it with cash on hand.

The press release also notes a number of “compelling strategic and financial benefits” that would come with the deal. This includes the unification of two complementary product portfolios as Nano is well-known in 3D printed electronics and high-performance polymers while DM has a background in industrial platforms with metal, ceramics, sand and polymers. As a result, material development in particular will be a priority through this deal.

The union is also expected to help accelerate industry transition to mass production, certainly one of the most important current additive manufacturing goals, while also deepening exposure in market such as automotive, aerospace & defense, medical, among others. The companies served will include Amazon, Caterpillar, Fraunhofer Institute, NASA, Raytheon, REHAU, Tesla, Thermo Fisher Scientific, Toyota and the US army among many others. Indeed, 2023 already showed a combined revenue of $246 million for Desktop Metal and Nano Dimension, plus it seems that the combined companies expected to have a strong financial profile and cash reserves.

Nano Dimension is known for its work in electronics, although this acquisition is expected to open up new applications for both the company and Desktop Metal (photo credits: Nano Dimension)

Ric Fulop 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 digital manufacturing technologies for metal, electronics, casting, polymer, micro-polymer and ceramics applications. We look forward to working with Nano Dimension to join two great companies and their devoted teams that can serve our stakeholders to the maximum extent possible.”

Of course, it should go without saying that this deal is subject to certain closing conditions. These include the approval of Desktop Metal’s stockholders and required regulatory approvals. In any case, it will be interesting to see how the acquisition progresses with the first joint investor call to be held today, Wednesday, July 3rd at 8:30 AM ET. Whether it will be good or bad news for now can be left to interpretation, but it certainly will shake things up in a year that was starting to a look a little stagnate for 3D printing as a whole. You can find out more in the press release HERE.

What do you think of this announcement of the acquisition of Desktop Metal by Nano Dimension? 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.

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