WALTHAM and BOSTON, Mass. - Nano Dimension Ltd . (NASDAQ:NNDM), a leader in additive electronics and manufacturing technologies, announced today an agreement to acquire all outstanding shares of Desktop Metal, Inc. (NYSE:DM), a company specializing in metal and polymer 3D printing solutions, in a deal valued at approximately $183 million. The transaction price of $5.50 per share represents a 27.3% premium over Desktop Metal's closing price as of July 2, 2024.
This strategic move is expected to create a combined entity with a broad product portfolio across various materials and applications, including metal, electronics, casting, polymer, micro-polymer, and ceramics. The merger aims to accelerate the shift from prototyping to mass production in additive manufacturing, targeting industries such as automotive, aerospace, defense, and medical sectors.
The combined company will have a strong financial foundation, with 2023 revenues reported at $246 million, 28% of which came from recurring revenue streams. The acquisition is anticipated to generate over $30 million in run-rate synergies over the next few years, alongside previously announced cost savings from both organizations.
Yoav Stern, CEO of Nano Dimension, emphasized the value creation potential from the combined expertise and product offerings, focusing on profitable growth. Ric Fulop, Desktop Metal's CEO, expressed enthusiasm for the merger, highlighting the enhanced customer service and comprehensive technology offerings that will result.
The deal is structured as an all-cash transaction, with the final price subject to possible adjustments based on transaction expenses and the provision of a $20 million secured loan facility if the closing extends into 2025. The transaction, approved by the Boards of Directors of both companies, is expected to close in the fourth quarter of 2024, pending customary closing conditions and regulatory approvals.
Nano Dimension plans to finance the purchase using its cash reserves and expects to maintain a robust cash position post-transaction. The combined company will focus on capitalizing on growth potential and reaching profitability through greater scale and market penetration.
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