Nano Dimension’s announcement of its plans to acquire Desktop Metal marks the end of a two-year saga in the additive manufacturing industry. The financial details of the deal are still being finalized, but it is expected to range between $135 million and $183 million, with the high end representing a 27% premium over Desktop Metal’s closing price.
The journey to this acquisition has been filled with twists and turns. In July 2022, Desktop Metal experienced a 12% reduction in staff, signaling a challenging time for the company. During this period, Nano Dimension made a move to acquire 12% of Stratasys, a major player in industrial 3D printing. However, this was followed by shareholder drama within Nano Dimension itself.
Despite the challenges faced by both companies, the possibility of a merger between Stratasys and Desktop Metal emerged. This led to multiple acquisition offers from Nano Dimension and 3D Systems, but they were all rejected. Ultimately, the Stratasys/Desktop Metal deal fell through in September.
During this time, Desktop Metal CEO Ric Fulop emphasized the independence and strong financial position of the company. In an interview with TCT Magazine, he stated that Desktop Metal was not for sale but had plans for growth and becoming the best company in additive manufacturing for mass production.
Now, eight months later, Fulop’s tone has changed. He is positive about the acquisition by Nano Dimension and highlights the complementary product portfolios of the two companies that will enhance their ability to serve customers in high-growth industries. The deal has been unanimously approved by both companies’ boards of directors and is expected to close in Q4.
Nano Dimension plans to fund the acquisition using cash on-hand, demonstrating its confidence in the strategic value of this deal. With the merger, Nano Dimension and Desktop Metal aim to create a stronger and more complete offering of digital manufacturing technologies for various applications, including metal, electronics, casting, polymer, micro-polymer, and ceramics.
This acquisition signifies a significant development in the additive manufacturing industry. It brings together two innovative companies and their dedicated teams, poised to serve their stakeholders to the maximum extent possible. As the deal closes, the industry will eagerly anticipate the impact of this merger on the future of digital manufacturing.