Nano Dimension has completed its acquisition of Desktop Metal.
The completion marks the conclusion to a prolific additive manufacturing M&A saga that has been ongoing since 2023, with a transaction valued at $179.3 million or $5.295 per share.
The new combined company, which is said to now comprise a complementary portfolio of advanced manufacturing solutions, is expected to have annual revenue for the year ended December 31, 2024 of over $200 million, based on preliminary and unaudited full year 2024 results.
The completion comes a week after The Delaware Court of Chancery ordered Nano Dimension to move forward with its acquisition of Desktop Metal after it took legal action against Nano Dimension, alleging it had breached its obligation to use reasonable best efforts to obtain regulatory approval as soon as practicable in connection with the proposed merger agreement, announced last July. The companies first announced the merger after a year of takeover talk, which began when Stratasys first attempted to merge with Desktop Metal, while Nano Dimension attempted its own takeover at Stratasys and, as Stratasys' biggest shareholder, voted against the planned Stratasys-Desktop merger. It later struck its own agreement with Desktop Metal, with former Nano Dimension CEO Yoav Stern stating that the deal, significantly lower than the one proposed by Stratasys a year earlier, was a good one for Nano.
The deal was completed under Nano Dimension’s new board of directors and management team which, per a press release, are described as a group ‘concentrated on addressing the realities of a combined company with an unwavering focus on establishing a sustainable business model.’ The new leadership team came into play at the end of last year after Stern was terminated from the additive manufacturing company on December 26th. Since then, Nano Dimension says it has been undergoing a strategic review process and taken steps to reduce expenses of its core business. With the deal now closed, the company says it plans to ‘expand these optimization initiatives across the combined organization with increased scope and urgency’. The company hasn’t shared whether certain products or departments will be affected by such plans but says it is now focused on maintaining its financial strength, driving growth through efficiencies in manufacturing, operations, supply chains and information systems, and building customer partnerships.
Mr. Ofir Baharav, Chairman of the board of directors of Nano Dimension, commented: “The completion of the Desktop Metal acquisition represents a significant opportunity. We are excited about the ability to offer leading customers more innovative technologies. Our new leadership group is squarely focused on implementing necessary measures to achieve a sustainable business model that will allow us to successfully create value for all stakeholders. We will make clear-eyed, objective assessments of our combined operations, identifying immediate cost synergies, and strategically realigning resources toward our highest-potential product lines.”
“Our commitment to shareholders is straightforward: disciplined capital management, prioritization of resources to areas that will drive meaningful returns, aggressive margin improvement through operational efficiencies, and a relentless focus on building the customer relationships that will sustain our business for the long term.”
Nano Dimension says it will now move forward with its pending merger with Markforged, another additive manufacturing company with some similar product capabilities to Desktop Metal, which it agreed to takeover in 115 million USD deal just months after the Desktop Metal deal was first announced.
