Nano Dimension Set to Acquire Desktop Metal, a Strategic Move in Additive Manufacturing Sector
Nano Dimension announced its plans to acquire Desktop Metal in a deal potentially valued at $135-$183 million, representing a substantial premium at the higher end. This strategic acquisition comes amid a period of upheaval in the additive manufacturing industry following a series of merger and acquisition proposals and rejections.
Nano Dimension's previous acquisition of a 12% stake in Stratasys, owner of MakerBot, further underscores the turbulence in the sector, which was compounded by Desktop Metal's recent staff cuts. Notably, Stratasys rejected Nano Dimension's takeover bid, forging subsequent merger plans with Desktop Metal that ultimately faltered.
Key Takeaways
- Nano Dimension to acquire Desktop Metal for $135-$183 million, representing a 27% premium at the high end of the price range.
- Desktop Metal faced staff cuts and shareholder issues, while Nano Dimension previously attempted to acquire Stratasys and held 12% of Stratasys shares.
- Both companies' boards have unanimously approved the acquisition.
Analysis
The acquisition of Desktop Metal by Nano Dimension, valued up to $183 million, reflects a strategic move to consolidate in a volatile additive manufacturing sector. This merger aims to leverage combined technologies, enhancing market presence in high-growth industries. The deal, financed through Nano Dimension's cash reserves, follows previous failed acquisitions and strategic investments, signaling a sector-wide reshuffle.
Short-term impacts may include potential job cuts and shareholder adjustments, while long-term benefits could stem from technological synergies and expanded market reach. This consolidation has the potential to stabilize the sector, potentially influencing future investment and innovation trends.
Did You Know?
- Additive Manufacturing: Additive manufacturing, commonly known as 3D printing, is a process of creating three-dimensional objects from a digital file. Unlike traditional subtractive manufacturing methods that involve cutting away material to shape an object, additive manufacturing builds objects layer by layer, which can lead to more efficient material use and complex designs. This technology is utilized across various industries including aerospace, automotive, healthcare, and consumer products.
- Nano Dimension: Nano Dimension specializes in advanced additive manufacturing technologies, particularly in the field of electronics. The company develops 3D printers capable of printing multi-material objects containing electronic circuits, crucial for the rapid prototyping and production of electronic devices. Their technology aims to enhance the capabilities of the electronics industry by enabling faster and more flexible manufacturing processes.
- Desktop Metal: Desktop Metal focuses on making metal 3D printing accessible to engineers and manufacturers. They offer a range of 3D printing systems designed to be more affordable and faster than traditional metal fabrication methods. Their technology is geared towards simplifying the production of metal parts, making it easier for small and medium-sized businesses to adopt advanced manufacturing techniques.