WALTHAM, Mass. - Nano Dimension Ltd . (NASDAQ: NASDAQ:NNDM), a prominent player in the additive manufacturing and 3D printing sector, has announced the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR Act), moving a step closer to its acquisition of Desktop Metal, Inc. (NYSE: DM). The HSR Act requires companies to file pre-merger notifications and observe a waiting period, allowing U.S. antitrust authorities to examine proposed mergers.
This development signifies that no further antitrust reviews by U.S. authorities are necessary for the transaction to proceed. Although the acquisition remains subject to other standard closing conditions, this milestone aligns with the anticipated closing timeline set for the fourth quarter of 2024.
Nano Dimension is recognized for its Additively Manufactured Electronics (AME) and its multi-dimensional polymer, metal, and ceramic additive manufacturing solutions. The company's strategic focus is on transforming traditional manufacturing processes using its deep learning-based AI and distributed manufacturing network managed via the cloud. Serving over 2,000 customers, Nano Dimension caters to various industries, including aerospace, defense, automotive, medical technology, and academia.
The proposed acquisition of Desktop Metal, a company specializing in metal 3D printing technology, is expected to enhance Nano Dimension's product offerings and market reach. The transaction is subject to customary closing conditions, including approval from Desktop Metal's shareholders.
Both companies have previously filed relevant documents with the U.S. Securities and Exchange Commission (SEC), and Desktop Metal has provided a definitive proxy statement to its shareholders, urging them to read it thoroughly for detailed information about the proposed transaction.
This press release contains forward-looking statements and is based on current expectations of future events. However, these are subject to risks, uncertainties, and changes in circumstances which may cause actual results to differ materially from those anticipated in the statements.
Investors and interested parties should note that this article is based on a press release statement and should refer to filings with the SEC and the companies' websites for further details and official communications regarding the acquisition.
In other recent news, Desktop Metal, a key player in the additive manufacturing sector, reported a Q2 2024 revenue of $38.9 million, marking a decrease from the previous year. This decline was primarily due to reduced hardware sales, influenced by rising interest rates and a slowing market. However, the company has announced a proposed merger with Nano Dimension, a development that is expected to create a significant presence in the industry and enhance its financial profile for future operations.
Despite the financial challenges, Desktop Metal managed to improve its adjusted EBITDA by $1.8 million compared to the same quarter in the previous year. Nevertheless, the company has stopped providing financial guidance for the rest of 2024 due to the pending acquisition.
These recent developments come amid a period of financial pressure for Desktop Metal, with rising interest rates and a market slowdown impacting its financial stability. However, the anticipated merger with Nano Dimension is expected to accelerate the shift to mass production in the additive manufacturing industry and provide a stronger financial profile to better support its customers. Notably, consumables and services revenue remained relatively stable year-on-year, and the company has implemented cost-saving measures that successfully reduced non-GAAP operating expenses.
InvestingPro Insights
As the acquisition of Desktop Metal by Nano Dimension progresses, investors are closely monitoring the financial health and market performance of Desktop Metal (NYSE: DM). According to recent data from InvestingPro, Desktop Metal's market capitalization stands at a modest $144.23 million, indicating a relatively small size within the industry. The company's revenue over the last twelve months as of Q2 2024 has experienced a decline of 13.66%, reflecting potential challenges in the market or operational aspects of the business.
InvestingPro Tips suggest that Desktop Metal is facing some financial headwinds. Analysts have revised their earnings expectations downwards for the upcoming period, and there is a concern that the company may struggle to make interest payments on its debt, given its cash burn rate. Additionally, the company's stock is known for high price volatility, which could present risks for investors seeking stability.
However, it's not all negative. Desktop Metal's liquid assets currently exceed its short-term obligations, providing some financial cushioning. This could be a crucial factor for Nano Dimension as it moves forward with the acquisition, considering the importance of financial stability in such transactions.
For those interested in a deeper analysis, there are 15 additional InvestingPro Tips available for Desktop Metal, which can be found at https://www.investing.com/pro/DM. These tips could provide valuable insights for investors as they assess the implications of the acquisition and Desktop Metal's future prospects within the additive manufacturing and 3D printing sector.
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