Nano Dimension moves closer to closing Desktop Metal deal after shareholder vote

By Ciara Linnane

Desktop Metal shareholders voted to approve the deal which was part of an M&A battle through 2023

The proposed merger of 3-D printing companies Nano Dimension Ltd. and Desktop metal Inc. moved closer to completion on Thursday, after Desktop Metal shareholders voted to approve the deal.

Some 60% of the roughly 33 million outstanding Desktop Metal shares (DM) were voted in favor of approving the merger, Waltham, Mass.-based Nano Dimension said in a statement.

The two companies spent most of 2023 embroiled in an M&A battle with Stratasys Ltd (SSYS), a rival that was also trying to acquire Desktop Metal. That deal collapsed after shareholders rejected it but Nano Dimension (NNDM) also sought to acquire Stratasys as that company's biggest shareholder before abandoning that effort.

Another 3-D printing company, 3D Systems Corp. (DDD), also briefly entered the fray.

Nano Dimension's stock rose 2.1% on the news, while Desktop metal was up 3%. While there are still other regulatory approvals to be won, the deal is expected to close in the fourth quarter.

"This industry needs the combination of great products and technologies with a strong balance sheet to become self-sustaining," said Ric Fulop, Desktop Metal's founder and chief executive, in prepared remarks. "The agreement to combine with Nano Dimension is the best offer for stockholders to realize value from their current holdings in Desktop Metal."

Nano Dimension has served more than 2,000 customers in markets including aerospace and defense, advanced automotive, high-tech industrial and specialty medical technology, among others.

Separately, the company said it expects third-quarter revenue of $14.7 million, up 21% from the same period a year ago. There are no FactSet consensus estimates for the company, which is expected to report third-quarter earnings on Nov. 14.

Most of the companies in the 3-D printing space are loss making for now.

Nano Dimension's stock has fallen 0.4% in the year to date, while the S&P 500 SPX has gained 19%.

-Ciara Linnane

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10-03-24 1101ET

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