Nano Dimension Ltd. (Nasdaq: NNDM) has entered right into a definitive settlement to accumulate Markforged Holding Company (NYSE: MKFG) in an all-cash transaction valued at roughly $115 million. Below the phrases of the settlement, Nano Dimension will buy all excellent shares of Markforged at $5.00 per share, representing a 71.8% premium over Markforged’s volume-weighted common value (VWAP) as of September 24, 2024.
Strategic Growth in Additive Manufacturing
The acquisition is a strategic transfer by Nano Dimension to solidify its place within the additive manufacturing (AM) trade, particularly following its current settlement to accumulate Desktop Steel, Inc. (NYSE: DM). With the inclusion of Markforged and Desktop Steel, the mixed firm’s income based mostly on fiscal 12 months 2023 figures is projected to succeed in $340 million. The corporate anticipates this consolidation will present a transparent path to profitability.
Yoav Stern, Chief Government Officer of Nano Dimension, commented, “In combining with Markforged, Nano Dimension is taking daring motion in its journey in direction of changing into a digital manufacturing chief and being a foundational pillar of Business 4.0. Markforged is an distinctive firm with modern AM supplies and options for true manufacturing. Their prowess is validated by their greater than fifteen thousand put in and linked programs within the area with many main names throughout key trade verticals. I’m excited to work with Shai Terem and his workforce, who’ve finished an distinctive job growing their cutting-edge options. That is all of the extra substantial once we take into consideration the anticipated closing of our cope with Desktop Steel. We consider the mixture of Nano Dimension, Desktop Steel, and Markforged additional strengthens our distinctive alternative in creating worth for our shareholders, prospects, and workers as we work to ship worthwhile development, distinctive providers, and notable profession improvement alternatives.”
Shai Terem, Chief Government Officer, President, and member of the board of administrators of Markfoged, added, “We’re excited to carry collectively our pioneering, complementary product portfolios that may additional improve our means to serve our prospects in high-growth industries with a extra full providing of extremely modern options used on the manufacturing unit flooring. Not solely is our product providing distinctive, however collectively we may have the size and stability sheet energy to change into an much more trusted associate to our prospects, who’re leaders throughout a number of industries. We look ahead to working with Nano Dimension to affix nice firms and their devoted groups that may serve our stakeholders to the utmost extent doable.”
Markforged’s Monetary Highlights
Markforged reported income of $93.8 million in 2023, with a gross margin of 47.4% and a non-GAAP gross margin of 48.6%. Within the second quarter of 2024, the corporate achieved a gross margin of 48.3% and a non-GAAP gross margin of 51.9%, indicating potential for additional growth. As of June 30, 2024, Markforged held $93.9 million in money and money equivalents, together with $19.1 million in restricted money reserved for liabilities associated to the Steady Composites lawsuit.
Key Advantages of the Acquisition
Expanded Product Portfolio: The merger will combine Markforged’s experience in fused filament fabrication (FFF) for high-performance purposes with Nano Dimension’s current applied sciences. Prospects may have entry to a complete vary of AM options, together with binder jetting, digital mild processing, and additive inkjet throughout numerous supplies.
Management in Steel Additive Manufacturing: The mixed entity will strengthen its place within the metal-AM sector, thought of a major development driver within the trade. By providing numerous metallic fabrication options, the corporate goals to fulfill particular buyer necessities throughout a number of purposes.
Superior Supplies Focus: Emphasizing the significance of supplies in producing end-use elements, the merger will improve capabilities in composite supplies, significantly steady fiber reinforcement. This expertise permits polymer-based purposes with the energy of metallic, opening new avenues in additive manufacturing.
Elevated Scale and Effectivity: The consolidation is anticipated to generate vital value financial savings and operational efficiencies. Enhanced analysis and improvement capabilities will drive innovation, and the mixed sources are projected to provide tens of millions in synergies over the subsequent few years.
Monetary Particulars and Closing Circumstances
The transaction is just not topic to any financing situations, as Nano Dimension plans to make the most of its money reserves. Publish-closing, the mixed firm is anticipated to have roughly $475 million in money, money equivalents, and marketable securities.
The deal has acquired unanimous approval from the boards of administrators of each firms. Completion of the transaction is contingent upon customary closing situations, together with regulatory approvals and approval from Markforged’s shareholders. The acquisition is anticipated to shut within the first quarter of 2025.
Further info relating to the transaction might be disclosed in filings with the U.S. Securities and Change Fee (SEC).
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Featured picture reveals Nano Dimension 3D printed electronics. Photograph by Michael Petch.
