Nano Dimension set to acquire Desktop Metal after ISS nod

WALTHAM, Mass. – Institutional Shareholder Services (ISS), a leading proxy advisory firm, has recommended that shareholders of Desktop Metal, Inc. (NYSE: DM) vote in favor of the proposed merger with Nano Dimension Ltd . (Nasdaq: NASDAQ:NNDM). The merger, a significant move within the additive manufacturing industry, was initially announced on July 3, 2024.

ISS's endorsement is a key factor for Desktop Metal's shareholders as they prepare to cast their votes on the merger agreement and other related proposals. The advisory firm's analysis suggests that the offer is the best available option at this time, providing shareholders with a premium and fair implied valuation. The transaction also promises liquidity and immediate value through cash consideration.

Desktop Metal's shareholders are urged to vote by 11:59 pm ET on October 1, following the instructions provided by their brokers. The vote is a crucial step towards finalizing the deal, which does not require the approval of Nano Dimension's shareholders.

Ric Fulop, Founder and CEO of Desktop Metal, and Yoav Stern, CEO of Nano Dimension, have both expressed confidence in the merger. They anticipate that the acquisition will serve shareholders to the maximum extent, pending the final vote and regulatory approvals.

Desktop Metal, a pioneer in Additive Manufacturing 2.0, has been at the forefront of digital mass production of industrial, medical, and consumer products through its advanced 3D printing technologies. Similarly, Nano Dimension aims to transform electronics and mechanical manufacturing into environmentally friendly and economically efficient operations, driven by deep learning-based artificial intelligence and cloud-based distributed manufacturing networks.

The proposed merger is expected to combine the strengths of both companies, leveraging Desktop Metal's expertise in 3D printing methods like binder jetting and digital light processing with Nano Dimension's focus on additive electronics and manufacturing.

This news is based on a press release statement and the transaction details are subject to final shareholder votes and necessary regulatory approvals. The definitive Proxy Statement was filed with the SEC on August 15, 2024, and is available for investors' and security holders' review.

In other recent news, Nano Dimension Ltd. and defense technology company HENSOLDT AG have announced the extension of their joint venture, Jetted Additively Manufactured Electronics Sources GmbH (J.A.M.E.S). The collaboration aims to promote the adoption of Additively Manufactured Electronics (AME) technology. Furthermore, Nano Dimension reported a 2% year-over-year increase in revenue and a 54% reduction in cash burn during its second quarter 2024 earnings call. The company also disclosed plans to acquire Desktop Metal, a transaction expected to close by year-end valued between $135 million to $180 million.

In addition, Nano Dimension has allocated $150 million for share buybacks. The company is focusing on software and AI as key drivers for machine sales and is exploring a strategic relationship with Stratasys (NASDAQ:SSYS), particularly in metal and electronics. The company is also working to increase the gross margins of Desktop Metal to achieve a target of 60%. These are recent developments that investors should monitor.

InvestingPro Insights

As shareholders of Desktop Metal consider the strategic merger with Nano Dimension Ltd. (NNDM), they might find the latest financial metrics and analysis from InvestingPro valuable for making an informed decision. Nano Dimension, known for its advanced electronics 3D printing technology, holds a market capitalization of approximately $486.71 million and is trading at a low Price / Book multiple of 0.56, suggesting that the company's stock may be undervalued relative to its book value.

While the company is not currently profitable, with a negative P/E ratio, analysts on InvestingPro predict that Nano Dimension will turn a profit this year, indicating potential for future growth and financial stability. Despite facing challenges such as a high burn rate of cash, Nano Dimension's liquid assets surpass its short-term obligations, providing some financial cushioning. This is particularly relevant as the merger progresses, assuring stakeholders of Nano Dimension's capacity to meet its immediate financial commitments.

InvestingPro Tips highlight that Nano Dimension is trading at a low Price / Book multiple and holds more cash than debt on its balance sheet. These factors could be seen as indicators of underlying value and financial prudence, respectively, which may be of interest to Desktop Metal's shareholders as they assess the merger proposal. For those looking for a deeper dive into the company's financial health, InvestingPro offers a total of 10 tips on Nano Dimension, available at InvestingPro Nano Dimension.

The insights provided by InvestingPro, including a comprehensive set of additional tips, can serve as a valuable resource for investors seeking to understand the financial nuances of the companies involved in the merger.

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