This week Nano Dimension took over the 3D printing industry headlines once again when it announced its second major acquisition this year, continuing its march to become a leader in additive manufacturing.
The company has confirmed its intent to purchase Markforged in an all-cash deal said to be worth $115 million that will add fused filament fabrication and composite materials to its growing portfolio of AM technologies.
Earlier today, Nano Dimension CEO Yoav Stern and Markforged CEO Shai Terem joined an investor call to share details on the motivation behind the acquisition, where their technologies fit together, and plans for profitability.
Here’s five things we learned.
Nano Dimension will rebrand
Stern has confirmed that Nano Dimension will rebrand following its acquisitions of both Desktop Metal and Markforged. Stern said the company would rebrand the whole group to reflect its comprehensive set of 3D printing technologies, which now comprises metal, electronics, ceramics, microprinting, polymers and composites. Stern justified the rebrand by explaining that Nano Dimension, which first came into the industry as an electronics printing company, would not want to compare itself to itself but rather as ‘the new guy on the block.’
He went on to say that the new company will retain the most senior members of management from both companies but some will move to new roles. Stern will remain as CEO.
The timing was right
Similar to the Desktop Metal deal, the timing of the acquisition was intentional with Stern confirming that the company was ‘waiting for the right price.’ He believes the three companies are in a position to deliver results, making costs ‘totally justifiable.’
Per a joint statement, the deal has been unanimously approved by the boards of both companies and is expected to close in the first quarter of 2025. The acquisition is based on 5.00 USD per Markforged share, which represents a 71.8% premium to Markforged’s VWAP and a 67.8% premium to Markforged’s 90 day VWAP both as of September 24th. Alongside Desktop Metal, the combined company is expected to have approximately 475 million USD of projected cash, cash equivalents, and marketable securities post-transaction.
Yoav described it as a ‘win win situation’ reflecting ‘a good price for us and a good price for the shareholders.’
Materials are at the core of profitability
When Nano Dimension announced its plans to acquire Desktop Metal in July, the company’s expansive material portfolio was thought to be a valuable asset, particularly as demand for production applications ushers in greater demand for materials. A similar sentiment was shared with regards to Markforged’s capabilities.
Yoav stated his belief that ‘everything starts with [the] amazing material’. He described Markforged’s materials as ‘a breakthrough’, owed to its strong polymer composites capabilities that are enabling metal-like replacements for traditionally cast parts. This is being bolstered by Markforged’s machine install base of 15,000 3D printers operating in the field today, each of which Yoav sees as a clear opportunity to generate recurring revenue from materials. This is backed by Markforged’s strong sales of 93.8 million USD in 2023, 37% of which came from recurring sales.
Nano Dimension is not done with acquisitions
While Nano Dimension now has an extensive line-up of 3D printing processes under its belt, Stern said there are ‘very clear technologies’ that he intends to add in future. Though he wouldn’t elaborate on what those technologies are, Stern did say that smaller acquisitions, closer to those it started out with in Nanofabrica and Admatec for example, would be made to complement gaps in its product line. However, we shouldn’t expect to see another acquisition of this size any time soon. Instead the company will focus its efforts over the next two years on structuring the business, developing channels and a financial structure that will ‘take dollars to the bottom line.’
Acknowledging the crossover between some of the technologies it has now brought in through both both acquisitions, particularly metal binder jet, Stern said there were a lot of complementary characteristics between them and stressed that certain binder technologies will be better suited to certain applications. He didn’t specify any specific product consolidation plans but posited that one of the key problems in the in AM industry is the number of technologies being developed without a clear application or solution in mind, and said ultimately, the best products would win.
Is Nano Dimension done with Stratasys?
Nano Dimension is still a major shareholder in Stratasys and plans to continue to be, according to Stern. After a drawn out M&A saga which took over much of 2023’s new cycle, Nano Dimension failed to secure a deal to acquire the 3D printing pioneer but Stern says it’s now ‘talking to Stratasys from a very different angle’ which is focused on strategic co-operation and where the two companies can leverage each other’s strengths.
