The combined Nano Dimension-Desktop Metal-Markforged company would have revenue of $340 million based on fiscal year 2023.
The Israeli 3D printer maker plans to purchase the American company that has seen its valuation plummet since reaching more than $5 billion in 2021.
Nano Dimension has revealed its intention to acquire Desktop Metal, with the financial terms of the deal expected to range from $135 million to $183 million. This acquisition could represent a premium exceeding 27% over Desktop Metal’s recent closing stock price.
The transaction combines the strengths of each company across varied end applications, Additive Manufacturing (AM) technologies and material coverage to create the broadest product portfolio across metal, electronics, casting, polymer, micro-polymer and ceramics. Nano is a known leader in 3D printed electronics and high-performance polymer, ceramic and metal applications, with a robust software platform driven by DeepCube’s deep learning-based AI, while Desktop Metal maintains platforms focused on industrial-volume scale applications of metal and polymer with proprietary materials, software, and sintering solutions.
The union of the two companies will ideally create a leader in 3D printing innovative solutions that drive the transition from prototyping to mainstream tooling and end-use part production, which has been the stated goal of both companies from the start. The combined company will be the first AM provider covering the full gamut of customer needs from prototyping to production across a range of critical and high-performance medical and electronics applications in industrial and high-performance materials.
This means that the new group will be able to offer material jetting electronics 3D printing (AME) via the Nano Dimension’s original Dragonfly systems, ceramics stereolithography via Adamtec and ceramics and sand binder jetting via ExOne, micro stereolithography via Fabrica Group and DLP stereolithography via ETEC, as well as metal binder jetting and bound metal filament printing via Desktop Metal, with bound metal stereolithography also via Adamtec and bioprinting via Desktop Health’s 3D bioplotter, plus materials and services.
This development concludes over two years of intense interactions among leading companies in the additive manufacturing industry. In July 2022, Desktop Metal experienced a 12% reduction in its workforce, coinciding with Nano Dimension’s acquisition of a 12% stake in Stratasys, a major player in industrial 3D printing and the owner of MakerBot. Around the same time, Desktop Metal faced another round of layoffs while Nano Dimension was dealing with its own shareholder issues.
In purchasing Markforged, Nano Dimension said it is acquiring a company with scale and efficiency. Founded in 2013, Markforged is headquartered in Watertown, Massachusetts, US where it designs the hardware, software and materials that powers its platform. Markforged’s additive manufacturing platform – The Digital Forge – allows manufacturers to create strong, accurate parts in both metal and advanced composites.
