WALTHAM, Mass. - Markforged Holding Corporation (NYSE: MKFG), a company specializing in industrial 3D printing technology, has been named as a defendant in a lawsuit filed by Desktop Metal, Inc. concerning its ongoing merger with Nano Dimension Ltd . (NYSE: NASDAQ:NNDM). The complaint, filed on Monday, alleges that Nano Dimension breached a previous merger agreement with Desktop Metal by entering into a new agreement with Markforged. Nano Dimension, with a market capitalization of $544 million, has shown strong financial management with aggressive share buybacks according to InvestingPro data.Want deeper insights? InvestingPro subscribers have access to 12 additional expert tips and comprehensive financial analysis for Nano Dimension and 1,400+ other stocks.
The merger, announced on September 25, 2024, would result in Nano Dimension acquiring all outstanding shares of Markforged, with the latter becoming an indirect wholly-owned subsidiary of Nano. The transaction is contingent upon various closing conditions, including necessary regulatory approvals. As of today, Markforged has secured all required regulatory consents except for the approval from the Committee on Foreign Investment in the United States. Notably, Nano Dimension approaches this merger from a position of financial strength, maintaining a remarkable current ratio of 28.65 and holding more cash than debt on its balance sheet.
Desktop Metal’s legal action, lodged in the Delaware Court of Chancery, seeks to halt the Markforged-Nano Dimension merger until the completion of a previously proposed merger between Desktop Metal and Nano. Desktop Metal contends that proceeding with the Markforged merger could compromise the ability to finalize their own merger with Nano.
Markforged has expressed its belief that the claims brought forth by Desktop Metal are baseless and has announced its intention to vigorously defend against the lawsuit. However, the company has not provided an assessment of the potential outcome of the legal proceedings.
The press release includes forward-looking statements that highlight the intentions of Markforged and Nano Dimension to proceed with the merger, subject to meeting the remaining conditions. It also outlines the possible implications of the complaint on the merger’s completion and the combined operations of the entities involved.
Investors and industry observers are closely monitoring the situation, as the outcome of this legal challenge could significantly impact the strategic alignments within the 3D printing sector. The information regarding the lawsuit and the merger is based on a press release statement from Markforged. According to InvestingPro analysis, Nano Dimension appears undervalued at current levels, with analysts forecasting 24% revenue growth this year.Access the complete Pro Research Report and discover 12 key investment tips for Nano Dimension, along with detailed financial analysis and growth projections, exclusively on InvestingPro.
In other recent news, Nano Dimension Ltd. has seen a series of significant developments. The company recently appointed Julien Lederman as Interim CEO, following the termination of Yoav Stern (AS:PBHP)’s role. Lederman brings extensive experience from his tenure at Amazon.com (NASDAQ:AMZN), Inc., The Goldman Sachs Group (NYSE:GS), Inc., Lehman Brothers Holdings, Inc., and the World Economic Forum.
The company also reported a 29% organic revenue growth in 2023 and a 69% reduction in cash burn in the first half of 2024 compared to the same period in 2023. Additionally, Nano Dimension completed over $160 million in share repurchases since August 2022.
In terms of strategic acquisitions, the company’s purchases of Desktop Metal, Inc. and Markforged Holding Corporation are expected to strengthen its product offerings, customer base, and financial strength.
The board of directors at Nano Dimension underwent a significant reshuffle, with Ofir Baharav appointed as Chairman and Robert Pons, Dr. Joshua Rosensweig, and Kenneth Traub serving as members. These changes followed the resignation of several previous members.
Finally, despite facing opposition from Murchinson Ltd., Nano Dimension and defense technology company HENSOLDT AG extended their joint venture, Jetted Additively Manufactured Electronics Sources GmbH (J.A.M.E.S), aiming to promote the adoption of Additively Manufactured Electronics (AME) technology. These are the recent developments in Nano Dimension’s strategic transition towards Industry 4.0 and its consolidation in the additive manufacturing sector.
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