The high-stakes battle over Nano Dimension’s acquisition of Desktop Metal has taken a dramatic turn, with Delaware’s chancellor issuing a 48-hour ultimatum for the Israeli high-tech electronics firm to secure national security clearance or risk further legal fallout.
The ruling, handed down late Monday, rebukes Nano Dimension for failing to follow through on its $183 million agreement to acquire Desktop Metal, a defense contractor specializing in 3D printing components for missile defense and nuclear weapons. The acquisition, initially agreed upon in July, was priced at a 27.3% premium over Desktop’s stock value at the time.
Court Rebukes Nano for Stalling the Deal
In a fiery legal showdown that included a two-day trial from March 11-12, Chancellor Kathaleen St. J. McCormick ruled that Nano Dimension materially breached the merger agreement. Despite counterclaims, the court found no fault on Desktop Metal’s part.
“Regardless of who bears the burden, the equities favor specific performance,” McCormick wrote in her opinion. “Nano’s failure to take necessary actions has created uncertainty for customers, suppliers, and employees, including the ‘700 families’ who work for Desktop.”
The court’s ruling orders Nano to secure regulatory approval from the Committee on Foreign Investment in the United States (CFIUS) within 48 hours. If the acquisition is not completed by March 31, Desktop Metal can unilaterally extend the deadline.
