Nano Dimension Ltd. and Desktop Metal, Inc. has jointly announced that they have entered into a definitive agreement. Accordingly, Nano Dimension will acquire all outstanding shares of Desktop Metal in an all-cash transaction for US$5.50 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 VWAP as of July 2, 2024. For that reason, the total consideration of approximately $183 million. On the other hand, the transaction can possibly go down to $4.07 per share or $135 million in total.

Driving Digital Industry 4.0

Yoav Stern, Nano Dimension’s Chief Executive Officer and member of the Board of Directors, said, “Our combination with Desktop Metal is another step in Nano Dimension’s evolution to become the leader in digital manufacturing, with capabilities in mass manufacturing for critical industrial applications. We’re happy to join forces with an excellent group of technology leaders, all of whom share our vision for transforming manufacturing to Digital Industry 4.0.”

On the other hand, Ric Fulop, Desktop Metal’s Co-Founder and Chief Executive Officer, said, “We’re (bringing) together our pioneering, complementary product portfolios that will further enhance our ability to serve our customers in high-growth industries. Particularly, with a more complete offering of digital manufacturing technologies for metal, electronics, casting, polymer, micro-polymer and ceramics applications. We look forward to working with Nano Dimension to join two great companies and their devoted teams that can serve our stakeholders to the maximum extent possible.”

Compelling Strategic and Financial Benefits

• Unites two product portfolios with highly complementary capabilities: The transaction combines the strengths of each company across varied end user-applications, additive manufacturing technologies and material coverage to create the broadest product portfolio across metal, electronics, casting, polymer, micro-polymer and ceramics. Nano is leader in 3D-printed electronics and high-performance polymer, ceramic and metal applications, with a robust software platform driven by DeepCube’s deep learning-based AI. Meanwhile, while Desktop Metal maintains platforms focused on industrial-volume scale applications of metal and polymer with proprietary materials, software, and sintering solutions.

• Accelerates industry transition to mass production: The union of the two companies will create a long-term business and a leader in 3D print through innovative solutions. This will drive the transition from prototyping to mainstream tooling and end-use part production. Moreover, the combined company will be the first AM provider covering the full gamut of customer needs from prototyping to production. Specifically, across a range of critical and high-performance medical and electronics applications in industrial and high-performance materials.

• Deepens exposure in key end markets, enhancing customer penetration, while diversifying its base: The combined company will be able to expand opportunities to cross-sell to its existing customers. At the same time, to grow its overall customer base with optimized customer acquisition capabilities and joint go-to-market strategies, including targeting customers with complementary offerings in shared key markets in the automotive, aerospace/defense, industrial, medical and R&D/academia industries.

• Developing a premium, high-margin portfolio of AM & materials solutions with strong recurring revenue potential: Together, Nano Dimension’s and Desktop Metal’s portfolio will focus on high-tech solutions that generate premium margins. Furthermore, it has the support of an installed machine base of over 8,000 systems, representing significant opportunities.

• Together, the combined company will have a strong financial profile and cash reserves, to support a path to profitability and strategic initiatives: The combination will enable pooling of resources in administration, sales, marketing and R&D. Thus, generating efficiencies and cost savings opportunities, while enhancing R&D and innovation capabilities.

04 July 2024