Nano Dimension completes acquisition of Desktop Metal

WALTHAM, MA - Nano Dimension, a leading additive manufacturing firm, announced today the completion of its acquisition of Desktop Metal, Inc. (NYSE: DM), a move that positions the company as a global leader in advanced manufacturing solutions for high-value applications. The transaction, with a final value of $179.3 million or $5.295 per share, comes after gaining all necessary regulatory approvals. Desktop Metal’s stock has shown remarkable momentum, posting a 112% return year-to-date according to InvestingPro data, though it remains 42% lower than a year ago.

The combined entity is expected to report annual revenue exceeding $200 million for the year ended December 31, 2024, based on preliminary and unaudited results. This projection comes as Desktop Metal’s recent revenue was $168.3 million, with InvestingPro analysis indicating challenging fundamentals, including a gross profit margin of just 11.3% and significant cash burn. The new organization will offer a portfolio of manufacturing solutions, including capital equipment, materials, and software for the design-to-manufacturing of sophisticated electronics, mechanical, and medical applications. Its customer base spans various industries, including Fortune 500 companies and leaders in aerospace, defense, automotive, consumer electronics, industrial automation, and medical technology.

Under the guidance of a new board of directors and management team, Nano Dimension aims to execute a strategic financial transformation. Since assuming control in December 2024, the new leadership has been focusing on reducing core business expenses and is now set to extend these optimization efforts across the merged company. This transformation is crucial given Desktop Metal’s current financial health score of "FAIR" according to InvestingPro, which offers comprehensive analysis and 16 additional key insights about the company’s prospects in its Pro Research Report.

Chairman Ofir Baharav expressed optimism about the acquisition, emphasizing the leadership’s commitment to a sustainable business model, shareholder returns, operational efficiencies, and building strong customer partnerships. Nano Dimension plans to provide further details on integration plans and financial outlook after a comprehensive strategic review. Additionally, the company will discuss potential synergies with its pending merger with Markforged Holding Corporation (NYSE: MKFG) in future communications.

Nano Dimension’s acquisition of Desktop Metal reflects the company’s response to trends in onshoring, national security, and product customization, aiming to deliver advanced digital manufacturing technologies to various high-demand industries.

The information in this article is based on a press release statement, and the financial results mentioned are preliminary, unaudited, and subject to change upon final review.

In other recent news, Nano Dimension Ltd. is set to proceed with its acquisition of Desktop Metal, Inc. following a Delaware Court of Chancery ruling. The court found that Nano Dimension had breached the merger agreement and mandated the company to complete the merger process. This acquisition aligns with Nano Dimension’s strategic plans to enhance its market position in digital manufacturing solutions. Despite legal challenges, the company is preparing for the integration of Desktop Metal and is also merging with Markforged Holding Corporation to expand its scale and customer base.

Meanwhile, Desktop Metal’s stock surged after the court’s decision, reflecting investor confidence in the merger’s potential benefits. The company is keen to finalize the merger and integrate Nano Dimension’s capabilities into its operations. Financial research firm Cantor Fitzgerald maintained a Neutral rating for Desktop Metal, with a price target of $5.00, noting challenges in hardware sales due to macroeconomic conditions. The firm projects a sequential revenue increase of 21% for Desktop Metal’s upcoming quarterly report, though this marks a decline from the same period last year.

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