Nano Dimension agrees to buy Desktop Metal for as little as $135 million
Nano Dimension agrees to buy Desktop Metal for as little as $135 million
The Israeli 3D printer maker plans to purchase the American company that has seen its valuation plummet since reaching more than $5 billion in 2021
Nano Dimension revealed on Wednesday its intention to acquire Desktop Metal, with the financial terms of the deal expected to range from $135 million to $183 million. This acquisition could represent a premium exceeding 27% over Desktop Metal's closing stock price on Tuesday.
This development concludes over two years of intense interactions among leading companies in the additive manufacturing industry. In July 2022, Desktop Metal experienced a 12% reduction in its workforce, coinciding with Nano Dimension's acquisition of a 12% stake in Stratasys, a major player in industrial 3D printing and the owner of MakerBot. Around the same time, Desktop Metal faced another round of layoffs while Nano Dimension was dealing with its own shareholder issues.
Subsequently, Nano Dimension made an offer to take over Stratasys, which was promptly declined. Shortly after, Stratasys and Desktop Metal announced their own merger plans. In response, 3D Systems made a bid to acquire Stratasys. Throughout this period, both Nano Dimension and 3D Systems made multiple acquisition offers for Stratasys, all of which were rejected. Ultimately, the proposed merger between Stratasys and Desktop Metal fell through in September.
According to the companies, the combined company will have revenue of $246 million in 2023, of which 28% will be generated by recurring revenue streams from services and consumables.
“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,” said Yoav Stern, Nano Dimension’s Chief Executive Officer and member of the Board of Directors.
“We’re excited to bring together our pioneering, complementary product portfolios that will further enhance our ability to serve our customers in high-growth industries with a more complete offering of digital manufacturing technologies for metal, electronics, casting, polymer, micro-polymer and ceramics applications,” said Ric Fulop, Desktop Metal’s Co-Founder and Chief Executive Officer.
