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3D printer maker Nano Dimension Ltd. (NNDM) on July 3, 2024, entered into a definitive agreement to acquire its peer Desktop Metal (DM) for $183 million in cash.
Under the terms of the deal, Nano Dimension will acquire Desktop Metal at a rate of $5.50 per share, representing a premium of 27.31% over the stock’s last close.
However, the purchase price is subject to a few factors due to which it can fall to $4.07 per share, which will bring down the value of the deal to $135 million.
Desktop Metal expects transaction expenses to be around $11 million, which would decrease the price by approximately $0.44 per share, with a maximum reduction of $0.63 per share. If the transaction closing extends into 2025, Nano Dimension will provide Desktop Metal with a $20 million secured loan facility. While Desktop Metal does not anticipate using this facility, any amount drawn before closing will adjust the purchase price by up to $0.80 per share. If all reductions occur, the final price will be $4.07 per share, totaling $135 million.
Desktop Metal is a manufacturer of additive manufacturing technologies, providing 3D printing solutions for various industries, including metal, dental, polymer, and biofabrication applications. Nano Dimension also is a provider of advanced additive manufacturing solutions, offering 3D printers, robotics, and materials for producing high-performance electronic devices and components.
Last year, Desktop Metal acquired another of its peers Stratasys (SSYS) for $1.8 billion. That deal had come after Stratasys had rejected multiple takeover offers from Nano Dimension who was its largest shareholder at that time. Nano had launched a hostile offer to boost its stake in Stratasys.
That deal between Desktop Metal and Stratasys was terminated after the shareholders had rejected the proposed merger. Nano Dimension was among the shareholders who had voted against the merger.
After the deal between Desktop Metal and Nano Dimension is closed, which is expected in the fourth quarter of 2024, the combined company plans to grow its customer base by focusing on industries like automotive, aerospace, defense, industrial, medical, and research. They expect to serve customers like Amazon, NASA, Tesla, and the US Army.
Desktop Metal’s current EV/Sales (TTM) ratio is 1.16, below the sector median of 1.83.
For further insights on this merger and acquisition transaction, please visit the Deal Metrics page here:
Deal Metrics for the acquisition of Desktop Metal, Inc. (DM) by Nano Dimension Ltd. (NNDM)
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Editor’s Note: Baranjot Kaur contributed to this article