Nano Dimension to Acquire Desktop Metal

Nano Dimension Ltd., manufacturer of 3D printed electronics, and Desktop Metal, Inc., a 3D printing systems manufacturer, jointly announce entering into a definitive agreement where Nano Dimension will acquire all outstanding shares of Desktop Metal in an all-cash transaction for $5.50 per share, subject to possible downward adjustments to $4.07 per share.

At $5.50 per share, the transaction represents a 27.3% premium to Desktop Metal’s closing price and a 20.5% premium to the 30-day volume-weighted average price as of July 2, 2024, for total consideration of approximately $183 million, possibly down to $4.07 per share or $135 million in total.

Yoav Stern, Nano Dimension’s chief executive officer, says the acquisition is “another step in Nano Dimension’s evolution” to lead digital manufacturing, with capabilities in high-volume manufacturing for  industrial applications.

Stern, a member of the Nano Dimension board of directors, adds, “I look forward to working with Ric Fulop and his team to drive value for all our stakeholders, including creating opportunities for our employees as part of a larger, more diversified global innovative company, driving customer support and generating long-term growing value for shareholders as we focus on profitable growth.”

“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,” says Ric Fulop, Desktop Metal’s co-founder and chief executive officer. 

Strategic Benefits

• Unites two product portfolios with complementary capabilities for a portfolio across metal, electronics, casting, polymer, micro-polymer and ceramics. 
• Accelerates industry transition to mass production: The combined company as an AM provider will cover prototyping to production across medical and electronics applications.

• Deepens exposure in key end markets: The combined company is expected to expand to cross-sell to existing customers and to grow its overall customer base with optimized customer acquisition capabilities and joint go-to-market strategies. 

• Developing a high-margin portfolio of AM & materials solutions with strong recurring revenue potential: Together, Nano Dimension’s and Desktop Metal’s portfolio will be focused on solutions that generate premium margins and are supported by a machine base of 8,000+ systems. 

• Together, the combined company will have a strong financial profile and cash reserves, to support a path to profitability and strategic initiatives. 

Drivin by a Vision of Consolidation

In the Executive Perspectives panel at last week's Rapid + TCT conference, Stern suggested industry consolidation was the path to collective growth. “You can't make money when you are too fractured,” he said. 

Last year, Nano Dimension made several aggressive moves to acquire rival AM systems maker Stratasys, but was rebuffed by the Stratasys board. In the middle of Nano Dimension's takeover attempts, Stratasys also struck a merger deal with Desktop Metal, but the agreement fell apart in September 2028. 

At the time, Ric Fulop, Founder and CEO of Desktop Metal, said, “We’re grateful for our shareholders’ support. While the team at Desktop Metal believed in the merits of our combination, and is disappointed in the outcome of the merger agreement, we are completely confident in the trajectory of our business, which continues to lower operating costs while growing revenue.”

For more transaction details, click here.

The closing of the transaction is subject to certain closing conditions, including the approval of Desktop Metal’s stockholders, and required regulatory approvals, and certain termination rights as described in the merger agreement. The transaction, unanimously approved by the Boards of Directors of both companies, is expected to close in the fourth quarter of 2024, 

Sources: Press materials received from the company and additional information gleaned from the company’s website.