This week Nano Dimension took over the 3D printing trade headlines as soon as once more when it introduced its second main acquisition this yr, persevering with its march to change into a pacesetter in additive manufacturing.
The corporate has confirmed its intent to buy Markforged in an all-cash deal stated to be price $115 million that can add fused filament fabrication and composite supplies to its rising portfolio of AM applied sciences.
Earlier at the moment, Nano Dimension CEO Yoav Stern and Markforged CEO Shai Terem joined an investor name to share particulars on the motivation behind the acquisition, the place their applied sciences match collectively, and plans for profitability.
This is 5 issues we realized.
Nano Dimension will rebrand
Stern has confirmed that Nano Dimension will rebrand following its acquisitions of each Desktop Steel and Markforged. Stern stated the corporate would rebrand the entire group to mirror its complete set of 3D printing applied sciences, which now contains steel, electronics, ceramics, microprinting, polymers and composites. Stern justified the rebrand by explaining that Nano Dimension, which first got here into the trade as an electronics printing firm, wouldn’t need to examine itself to itself however fairly as ‘the brand new man on the block.’
He went on to say that the brand new firm will retain probably the most senior members of administration from each firms however some will transfer to new roles. Stern will stay as CEO.
The timing was proper
Much like the Desktop Steel deal, the timing of the acquisition was intentional with Stern confirming that the corporate was ‘ready for the best worth.’ He believes the three firms are ready to ship outcomes, making prices ‘completely justifiable.’
Per a joint assertion, the deal has been unanimously permitted by the boards of each firms and is anticipated to shut within the first quarter of 2025. The acquisition relies 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 each as of September twenty fourth. Alongside Desktop Steel, the mixed firm is anticipated to have roughly 475 million USD of projected money, money equivalents, and marketable securities post-transaction.
Yoav described it as a ‘win win scenario’ reflecting ‘ worth for us and worth for the shareholders.’
Supplies are on the core of profitability
When Nano Dimension introduced its plans to accumulate Desktop Steel in July, the corporate’s expansive materials portfolio was considered a precious asset, notably as demand for manufacturing purposes ushers in higher demand for supplies. An analogous sentiment was shared on the subject of Markforged’s capabilities.
Yoav said his perception that ‘every thing begins with [the] wonderful materials’. He described Markforged’s supplies as ‘a breakthrough’, owed to its robust polymer composites capabilities which can be enabling metal-like replacements for historically solid components. That is being bolstered by Markforged’s machine set up base of 15,000 3D printers working within the subject at the moment, every of which Yoav sees as a transparent alternative to generate recurring income from supplies. That is backed by Markforged’s robust gross sales of 93.8 million USD in 2023, 37% of which got here from recurring gross sales.
Nano Dimension just isn’t finished with acquisitions
Whereas Nano Dimension now has an intensive line-up of 3D printing processes below its belt, Stern stated there are ‘very clear applied sciences’ that he intends so as to add in future. Although he would not elaborate on what these applied sciences are, Stern did say that smaller acquisitions, nearer to these it began out with in Nanofabrica and Admatec for instance, can be made to enhance gaps in its product line. Nonetheless, we should not anticipate to see one other acquisition of this measurement any time quickly. As a substitute the corporate will focus its efforts over the following two years on structuring the enterprise, creating channels and a monetary construction that can ‘take {dollars} to the underside line.’
Acknowledging the crossover between a number of the applied sciences it has now introduced in by each each acquisitions, notably steel binder jet, Stern stated there have been a whole lot of complementary traits between them and burdened that sure binder applied sciences shall be higher suited to sure purposes. He did not specify any particular product consolidation plans however posited that one of many key issues within the in AM trade is the variety of applied sciences being developed with no clear utility or answer in thoughts, and stated in the end, the very best merchandise would win.
Is Nano Dimension finished with Stratasys?
Nano Dimension remains to be a serious shareholder in Stratasys and plans to proceed to be, based on Stern. After a drawn out M&A saga which took over a lot of 2023’s new cycle, Nano Dimension did not safe a deal to accumulate the 3D printing pioneer however Stern says it is now ‘speaking to Stratasys from a really completely different angle’ which is targeted on strategic co-operation and the place the 2 firms can leverage one another’s strengths.
