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Israeli 3D printing company Nano Dimension Ltd. announced Wednesday that it has signed a deal to acquire Massachusetts-based Desktop Metal Inc. for $183 million. This unexpected development comes after both companies had attempted to merge with a third rival last year, aiming for transactions worth over $1.8 billion.

Nano Dimension to Acquire Desktop Metal : Legal Advisers and Approval

The acquisition is being managed by four principal legal advisers. Nano Dimension is receiving guidance from Greenberg Traurig LLP and Sullivan & Worcester LLP, while Desktop Metal is being advised by Latham & Watkins LLP and Shibolet & Co. The boards of both companies have unanimously approved the transaction, which is expected to close in the fourth quarter of 2024. The deal is subject to customary closing conditions, including regulatory approvals and approval from Desktop's stockholders.

Transaction Details

Under the terms of the agreement, Nano Dimension will acquire all outstanding shares of Desktop Metal in an all-cash transaction valued at $5.50 per share. This represents a 27% premium to Desktop's prior day closing price. However, the price could be adjusted down to $4.07 per share based on certain conditions, potentially reducing the total cost to $135 million.

Nano Dimension to Acquire Desktop Metal : Stock Market Reaction

Following the announcement, Desktop Metal's stock surged approximately 19%, reaching $5.14 per share. This increase contrasts sharply with the stock's peak price of around $312 per share in early 2021, highlighting a significant decline over the past few years.

Previous Merger Attempts

The acquisition follows previous unsuccessful attempts by both Nano Dimension and Desktop Metal to merge with Stratasys Ltd. Last year, Desktop Metal abandoned its $1.8 billion merger agreement with Stratasys after Stratasys' shareholders voted against the bid. Nano Dimension, Stratasys' largest shareholder, had also made an earlier bid valuing Stratasys at about $1.6 billion, which was rejected. Additionally, Stratasys received a $2 billion offer from 3D Systems, which also did not materialize.

Nano Dimension to Acquire Desktop Metal : Strategic Vision

Nano Dimension's CEO Yoav Stern stated that the acquisition of Desktop Metal will mark "another step in Nano Dimension's evolution to become the leader in digital manufacturing, with capabilities in mass manufacturing for critical industrial applications." Desktop Metal's CEO Ric Fulop added that the deal will result in a "more complete offering of digital manufacturing technologies for metal, electronics, casting, polymer, micro-polymer, and ceramics applications."

Future Outlook

The acquisition of Desktop Metal by Nano Dimension is a significant move in the 3D printing industry. With both companies' combined expertise and technologies, they aim to enhance their position in digital manufacturing. The deal reflects their strategic vision to expand their capabilities and market reach.