WALTHAM, Mass. - In a significant step toward consolidation in the 3D printing industry, Desktop Metal, Inc. (NYSE: DM) stockholders have voted to approve the company's acquisition by Nano Dimension Ltd . (Nasdaq: NASDAQ:NNDM). The approval was secured during a special meeting where 60% of the outstanding shares of Desktop Metal, out of approximately 33 million, were cast in favor of the merger agreement. Of the votes tallied, more than 96% supported the transaction.
The approval by Desktop Metal's shareholders fulfills a crucial condition for the merger's completion. Although there are still regulatory approvals pending, expectations are set for the deal to close within the fourth quarter of 2024. The final voting outcomes from the stockholder meeting, which took place on October 2, 2024, will be reported to the U.S. Securities and Exchange Commission (SEC) in a forthcoming Form 8-K filing by Desktop Metal.
Desktop Metal's Founder and CEO Ric Fulop expressed satisfaction with the stockholders' decision, emphasizing the value realization for shareholders from the merger. He also noted the industry's need for robust financial foundations to achieve self-sustenance. Yoav Stern, CEO and Board Member of Nano Dimension, mirrored this sentiment, highlighting the merger's role in creating a formidable entity within the digital manufacturing sector. Stern also mentioned the anticipated subsequent business combination with Markforged Holding Corporation, aiming to establish a profitable industry leader.
Desktop Metal is known for spearheading Additive Manufacturing 2.0, focusing on digital mass production through its 3D printing technologies. Nano Dimension aims to transform traditional manufacturing into a more environmentally friendly and economically efficient process, leveraging AI and cloud-based distributed manufacturing networks.
The merger is part of a broader vision both companies share to advance the capabilities of 3D printing in various industries, including aerospace, defense, automotive, medical technology, and academia.
The information for this report is based on a press release statement.
In other recent news, Nano Dimension Ltd. reported a 21% increase in third-quarter revenue, reaching $14.7 million. This growth comes amidst the company's ongoing acquisition agreements with Desktop Metal, Inc. and Markforged Holding Corporation. On the other hand, Desktop Metal's Q2 2024 revenue fell to $38.9 million due to reduced hardware sales, though the company improved its adjusted EBITDA by $1.8 million compared to the same period last year.
In addition, Nano Dimension has cleared the U.S. antitrust hurdle for its proposed merger with Desktop Metal, marking a significant step forward in the transaction. The merger, expected to conclude in the fourth quarter of 2024, remains subject to approval from Desktop Metal's shareholders and other standard closing conditions.
Moreover, Desktop Health, a division of Desktop Metal, announced the qualification of Flexcera family resins for use with LuxCreo 3D printing systems. This development allows LuxCreo's dental 3D printers to produce various dental prosthetics using Flexcera's FDA 510(k) cleared nanoceramic polymers. The dental 3D printing market, where Flexcera and LuxCreo are now positioned, is expected to reach $8.1 billion by 2029.
These recent developments highlight the strategic steps taken by both Nano Dimension and Desktop Metal within the additive manufacturing sector. Please refer to official communications for further details.
InvestingPro Insights
As Desktop Metal (NYSE: DM) shareholders approve the acquisition by Nano Dimension, InvestingPro data reveals some challenging financial metrics that may have influenced this decision. The company's market capitalization stands at $156.53 million, reflecting a significant decline in valuation. This is underscored by the stark 64.85% drop in stock price over the past year, according to InvestingPro data.
The company's financial health appears precarious, with InvestingPro Tips indicating that Desktop Metal is "quickly burning through cash" and "may have trouble making interest payments on debt." These factors likely contributed to shareholders' willingness to approve the merger, seeking a more stable financial footing.
Revenue for the last twelve months as of Q2 2024 was $174.63 million, with a concerning 13.66% decline in revenue growth. This aligns with the InvestingPro Tip that "analysts anticipate sales decline in the current year," further justifying the need for strategic changes.
The merger with Nano Dimension could potentially address Desktop Metal's profitability issues, as InvestingPro Tips suggest that analysts "do not anticipate the company will be profitable this year." This consolidation might provide the necessary scale and resources to turn the company's fortunes around.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for Desktop Metal, providing deeper insights into the company's financial situation and market position.
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