Desktop Metal completes merger with Nano Dimension

Published 02/04/2025, 14:06
Desktop Metal completes merger with Nano Dimension

Desktop Metal, Inc. (NYSE:DM), a leader in the 3D printing industry with annual revenue of $168 million and a market capitalization of $165 million, has finalized its merger with Nano Dimension Ltd (NASDAQ:NNDM)., a prominent player in the field of additively manufactured electronics (AME) and printed electronics (PE), as of today. According to InvestingPro data, Desktop Metal has shown mixed performance, with a strong YTD return of 112% despite operating with significant debt burden. The merger, which was first announced on July 2, 2024, has resulted in Desktop Metal becoming an indirect wholly owned subsidiary of Nano Dimension.

As per the merger agreement, each share of Desktop Metal’s Class A common stock has been converted into the right to receive $5.295 in cash, excluding shares held in treasury or by Nano or its subsidiaries, and shares entitled to appraisal rights under Delaware law. Consequently, trading of Desktop Metal’s common stock on the New York Stock Exchange has been halted, and steps are being taken to delist the stock and deregister it under the Securities Exchange Act of 1934.

In connection with the merger, Desktop Metal and U.S. Bank Trust Company, National Association, as trustee, have entered into a supplemental indenture. This modifies the rights of holders of Desktop Metal’s 6.0% Convertible Senior Notes due 2027, changing their conversion rights to a cash amount based on a pre-determined conversion rate and the merger consideration.

The completion of the merger also led to a change in control of the company, with Nano Dimension now at the helm. As a part of the transition, all previous directors of Desktop Metal have resigned, and new directors appointed by Nano Dimension have taken their places. The executive officers of Desktop Metal prior to the merger will continue in their respective roles. InvestingPro analysis reveals the company faces financial challenges, with a debt-to-equity ratio of 1.93 and negative EBITDA of $60 million in the last twelve months. For deeper insights into Desktop Metal’s financial health and future prospects, investors can access the comprehensive Pro Research Report, which provides detailed analysis of over 1,400 US stocks.

Furthermore, Desktop Metal’s certificate of incorporation and bylaws have been amended and restated to reflect the new structure post-merger. This significant event marks a transformation in the 3D printing and additive manufacturing industry, with the combined entity poised to leverage the strengths of both companies. Desktop Metal’s current financial health score stands at "FAIR" according to InvestingPro, with a current ratio of 2.34 indicating sufficient liquidity to meet short-term obligations.

The details of the merger and associated changes to the company’s governance, capital structure, and listing status are based on a press release statement. This development is expected to have substantial implications for investors and the market at large.

In other recent news, Nano Dimension has completed its acquisition of Desktop Metal, Inc. The transaction, valued at $179.3 million, positions Nano Dimension as a global leader in advanced manufacturing solutions. The combined entity is expected to report annual revenue exceeding $200 million for the year ending December 31, 2024. This acquisition is part of Nano Dimension’s strategic plan to enhance its market position across various high-growth sectors, including aerospace, defense, and medical industries. Despite legal challenges, the Delaware Court of Chancery ruled in favor of completing the merger, which was a significant development for both companies. Nano Dimension is also in the process of merging with Markforged Holding Corporation, further expanding its scale and customer base. Cantor Fitzgerald recently maintained a Neutral rating for Desktop Metal, with a price target of $5.00, highlighting challenges in hardware sales due to macroeconomic conditions. The firm projects a sequential revenue increase of 21% for Desktop Metal, despite a year-over-year decline of approximately 16%.

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