Nano Dimension to Acquire Desktop Metal in 3D Printing Industry Deal

Breaking News

Nano Dimension has announced plans to acquire Desktop Metal, a leading industrial 3D printing giant. The deal is expected to close in Q4 of this year, with the sale price ranging from $135 million to $183 million.

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A Turbulent Past: Two Years of Acquisition Talks

This news marks a significant development in the ongoing saga between some of the biggest names in additive manufacturing. For over two years, there have been rumors and talks of potential acquisitions and mergers among industry leaders. The most notable was when Desktop Metal went through a 12% staff cut in July 2022, following which Nano Dimension acquired 12% of industrial 3D printing giant Stratasys.

The Back-and-Forth Acquisition Talks

Last year saw Nano Dimension dealing with its own shareholder drama, as Desktop Metal went through another round of layoffs. A few months later, Nano Dimension made a bid to take over Stratasys, which the latter rejected. Within a month, Stratasys and Desktop Metal announced merger plans. 3D Systems followed the news with its own bid to acquire Stratasys. Multiple acquisition offers from both Nano Dimension and 3D Systems arrived — and were rejected — in the intervening months. The Stratasys/Desktop Metal deal fell through in September.

A Change of Heart: Desktop Metal CEO’s New Stance

Industry publication TCT Magazine, which has closely followed the entire operatic saga, spoke to Desktop Metal CEO Ric Fulop that same month. ‘We’re 100% independent. Our company is not for sale. Contrary to what people make up, if you look at our cash position and our expenses, going into our first profitable quarter with around $100 million,’ Fulop said at the time. ‘We don’t need to sell our company, we like our company. And we weren’t selling our company, we were merging our company, we were going to remain working at the company. So, I would say our goal going forward is to grow Desktop Metal independently and make it the best company in mass production in additive.’

A New Era: Fulop’s Positive Outlook

Eight months later, Fulop sounds positive about the Nano Dimension news. He notes in a statement:

We’re excited to bring together our pioneering, complementary product portfolios that will further enhance our ability to serve our customers in high-growth industries with a more complete offering of digital manufacturing technologies for metal, electronics, casting, polymer, micro-polymer and ceramics applications. We look forward to working with Nano Dimension to join two great companies and their devoted teams that can serve our stakeholders to the maximum extent possible.

A Smooth Transition: Nano Dimension’s Plans

According to Nano Dimension, the deal was ‘unanimously approved’ by both companies’ boards of directors. Nano Dimension plans to pay for the deal using cash on hand, once it closes in Q4 of this year.

Industry Reaction and Implications

The acquisition has significant implications for the additive manufacturing industry, with many experts predicting a wave of consolidation in the coming years. The news brings closure to the turbulent past between some of the biggest names in the industry, but also raises questions about the future direction of these companies.

Conclusion

The acquisition of Desktop Metal by Nano Dimension marks a significant development in the additive manufacturing industry. The deal brings together two pioneering companies with complementary product portfolios, creating a more complete offering of digital manufacturing technologies for various applications. As the industry continues to evolve, this acquisition is likely to have far-reaching implications for the future direction of these companies and the industry as a whole.

About the Author

Brian Heater is the Hardware Editor at TechCrunch, covering the latest developments in the hardware space, from 3D printing to robotics. With over a decade of experience covering technology news, Brian has established himself as one of the leading voices in the field.

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