Nano Dimension has announced its plan to acquire Desktop Metal in an all-cash transaction valued at approximately $183 million, which could be reduced to $135 million depending on certain adjustments. The acquisition price represents a 27.3% premium to Desktop Metal's closing price and a 20.5% premium to the 30-day volume-weighted average price as of July 2, 2024.
The combined company will have a strong financial profile, with 2023 revenue of $246 million, of which 28% is from recurring revenue. This merger aims to create a leader in additive manufacturing (AM) by combining complementary product offerings across metal, electronics, casting, polymer, micro-polymer, and ceramics applications. Nano Dimension's strength in 3D-printed electronics and high-performance materials, along with Desktop Metal's industrial-scale metal and polymer applications, will provide a comprehensive AM solution.
Strategically, the merger will accelerate the industry's shift to mass production, moving from prototyping to mainstream tooling and end-use part production. It will also deepen market penetration, targeting key industries such as automotive, aerospace/defense, industrial, medical, and R&D/academia, with blue-chip customers including Amazon, Caterpillar, NASA, Raytheon, Tesla, and Toyota.
Financially, the combined company expects to benefit from significant synergies, with over $30 million in anticipated run-rate savings. The transaction is not subject to financing conditions, as Nano Dimension plans to use its cash reserves, projecting a strong cash position of approximately $665 million to $680 million post-transaction.
The acquisition is subject to regulatory approvals and is expected to close in the fourth quarter of 2024.
Read the whole press release here: Nano Dimension Press Release
The banner was designed by Freepik.