Nano Dimension Acquires Desktop Metal

Nano Dimension made an announcement on Wednesday about their intention to purchase Desktop Metal. The financial aspects of the deal are in the process of being finalized, with predictions suggesting a purchase price ranging from $135 million to $183 million. At its maximum, this transaction would exceed Desktop Metal’s last closing price by over 27%.

This announcement has settled speculations that spanned over two years involving key players in the additive manufacturing sector. Following a challenging period for Desktop Metal, which included a 12% reduction in workforce in July 2022, Nano Dimension secured a 12% stake in the 3D printing heavyweight Stratasys, the parent company of MakerBot. The subsequent period was marked by Nano Dimension navigating through its shareholder controversies while Desktop Metal embarked on another round of staff reductions.

Several months after, Nano Dimension extended an offer to acquire Stratasys, which was declined. Soon after, Stratasys and Desktop Metal started discussing merger possibilities. This development was quickly followed by a proposition from 3D System to purchase Stratasys. Throughout these months, both Nano Dimension and 3D Systems made multiple attempts to acquire partners, all of which were rebuffed, climaxing with the collapse of the merger talks between Stratasys and Desktop Metal in September.

TCT Magazine, which provided detailed reports on this turbulent story, conducted an interview with Desktop Metal’s CEO Ric Fulop during the same period.

Fulop emphasized, “We’re completely self-reliant. We have no intentions of selling our business. Despite rumors, our financial stability is evident with our first profitable quarter on the horizon and about $100 million in reserves. We’re focused on growing Desktop Metal independently and becoming the leading company in the mass production sector of additive manufacturing,” he stated then.

However, eight months later, Fulop expressed optimism regarding the merger with Nano Dimension, stating:

We are thrilled about the merger of our innovative, complimentary product lineup. This merger positions us well to deliver a broader range of digital manufacturing solutions across metal, electronics, casting, polymer, micro-polymer, and ceramics applications to our customers in fast-growing sectors. The collaboration between Nano Dimension and Desktop Metal aims to leverage the strengths of both teams to maximize value for all stakeholders involved.

Nano Dimension has indicated that both companies’ boards have given their “unanimous approval” for the transaction. The payment for the acquisition will be made in cash, with completion expected in the final quarter of this year.