Nano Dimension is set to acquire Desktop Metal in a transaction valued at up to $183 million, with a share price of $5.50, subject to adjustments. This acquisition positions the combined entity as a prominent player in additive manufacturing, aiming for a 2023 revenue of $246 million, with 28% from recurring sources.
Nano Dimension specializes in 3D printed electronics and high-performance materials, while Desktop Metal focuses on industrial-scale metal and polymer applications. The merger aims to leverage these complementary strengths to accelerate the industry shift toward mass production. The combined portfolio will span metals, electronics, casting, polymers, micro-polymers, and ceramics.
The merger enhances customer penetration, targeting markets such as automotive, aerospace, industrial, medical, and academia. It also diversifies the customer base with blue-chip clients like Amazon, NASA, and Tesla.
Financially, the merged company aims for a strong profile, with expected cost synergies of over $30 million and significant recurring revenue opportunities from an installed base of over 8,000 systems. The merger is set to close in Q4 2024, pending customary approvals. Nano Dimension plans to finance the transaction with existing cash reserves.
“We’re excited to bring together our pioneering, complementary product portfolios that will further enhance our ability to serve our customers in high-growth industries with a more complete offering of digital manufacturing technologies for metal, electronics, casting, polymer, micro-polymer and ceramics applications,” said Ric Fulop, Desktop Metal’s Co-Founder and Chief Executive Officer.
“We look forward to working with Nano Dimension to join two great companies and their devoted teams that can serve our stakeholders to the maximum extent possible.”
The acquisition is expected to generate efficiencies and enhance R&D capabilities, paving the way for profitable growth.