Nano Dimension has commenced a strategic review process to explore all available strategic alternatives to address Desktop Metal's liabilities and liquidity needs.
Reports suggest the strategic review could lead to the divestiture of Desktop Metal, just weeks after Nano Dimension completed the acquisition of the company. Nano has said it will share more details of the process in its 2024 financial results and 2025 outlook call later this month.
The acquisition of Desktop Metal was initially announced in July 2024, but was only completed in April after significant leadership changes at Nano Dimension. This board-level overhaul, which commenced at the end of 2024, cast doubt as to whether Nano Dimension would complete on the merger agreement, with Desktop Metal filing two lawsuits against Nano. In March, The Delaware Court of Chancery ordered Nano Dimension to move forward with its acquisition of Desktop Metal, having decided that Nano Dimension 'materially breached' its merger agreement with Desktop Metal. Within a week, the $179.3 million deal was done, but already Nano may be looking to divest the business.
Desktop Metal has struggled to reach profitability ever since it listed on the New York Stock Exchange via a SPAC deal in December 2020. These struggles led to Stratasys shareholders voting against the company's 2023 merger agreement with Desktop Metal, and Nano's largest shareholder Murchinson to continually warn against Nano's own deal to acquire the firm in recent months. Though the Murchinson representatives now controlling Nano were unable to step back from the acquisition of Desktop Metal, it appears as though they may be trying to sell off the business as soon as it can.
According to Nano Dimension's announcement, Desktop Metal has appointed Robert Warshauer to its Board of Directors and engaged Piper Sandler & Co. and FTI Consulting, Inc. as financial advisers while the strategic review process continues. Nano says that 'No assurances can be given as to the outcome or timing of the strategic review process.'
