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.
Mechanics of the Deal:
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.
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Company Profile and History:
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.
Deal Details and Timeline:
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.
Deal Metrics:
For more details regarding this M&A transaction, please visit the Deal Metrics page here: @ https://www.insidearbitrage.com/deal-metrics/DM/3000/desktop-metal-inc-to-be-acquired-by-nano-dimension-ltd/
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– A spread history chart of the merger from announcement through eventual completion or failure. – Every event as the merger progresses through the expiration of the HSR period, various regulatory approvals, shareholder votes, etc. – News and SEC filings. – A history of deal updates. – And a whole lot more.
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Disclaimer: This press release includes forward-looking statements within the meaning of applicable securities laws. Forward-looking statements can generally be identified by the use of words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “should,” “will,” or similar expressions. These statements are based on the current expectations and beliefs of Nano Dimension Ltd. (NNDM) and Desktop Metal (DM) management and are subject to a number of risks, uncertainties, and assumptions that could cause actual results to differ materially from those described in the forward-looking statements.
This content does not constitute financial advice, investment advice, or any other kind of advice, and should not be relied upon as such. Readers are encouraged to conduct their own research and seek professional guidance before making any investment decisions. The completion of the transaction is subject to various conditions, including shareholder and regulatory approvals, and there can be no assurances that the transaction will be completed as described. Neither the author nor the publishing platform assumes any responsibility or liability for any errors or omissions in the content of this press release.
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