Last close As at 05/08/2026
USD1.56
▲ −0.02 (−1.27%)
Market capitalisation
USD332m
Research: TMT
Nano Dimension has entered into a definitive agreement to acquire Desktop Metal (DM) in an all-cash deal worth $185m ($5.50 per DM share), with potential adjustments that could reduce it to $135m ($4.07 per share). The deal is subject to regulatory approvals and DM shareholder approval and is expected to close in Q424. With complementary product lines, the combined entity will offer a broad range of additive manufacturing solutions covering multiple verticals and materials, supporting the entire value chain from prototyping through to mass manufacturing.
Nano Dimension |
Agreement to acquire Desktop Metal |
Acquisition |
Tech hardware and equipment |
5 July 2024 |
Share price performance
Business description
Analyst
Nano Dimension is a research client of Edison Investment Research Limited |
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Nano Dimension has entered into a definitive agreement to acquire Desktop Metal (DM) in an all-cash deal worth $185m ($5.50 per DM share), with potential adjustments that could reduce it to $135m ($4.07 per share). The deal is subject to regulatory approvals and DM shareholder approval and is expected to close in Q424. With complementary product lines, the combined entity will offer a broad range of additive manufacturing solutions covering multiple verticals and materials, supporting the entire value chain from prototyping through to mass manufacturing.
Year |
Revenue |
Adjusted EBITDA (US$m) |
PBT* |
PAT* |
DPS |
P/E |
12/20 |
3.4 |
(12.6) |
(15.0) |
(15.0) |
0.00 |
N/A |
12/21 |
10.5 |
(38.4) |
(44.5) |
(44.5) |
0.00 |
N/A |
12/22 |
43.6 |
(91.3) |
(96.4) |
(96.4) |
0.00 |
N/A |
12/23 |
56.3 |
(99.9) |
(59.0) |
(59.0) |
0.00 |
N/A |
Source: Company data. Note: *PBT and PAT are normalised, excluding amortisation of acquired intangibles, exceptionals and share-based payments.
Nano Dimension (Nano) has agreed to acquire DM for $5.50 per share in an all-cash deal, funded from existing cash resources. This represents a 27.3% premium to DM’s 2 July closing price and a 20.5% premium to the 30-day volume-weighted average price. The deal is subject to Hart-Scott-Rodino and CFIUS approvals and requires approval by DM shareholders (shareholders representing 19% of the company have pledged their support), with closure targeted for Q424. The price could be subject to downward revision for two reasons (DM’s transaction costs and a potential $20m loan from Nano if the deal closure slips to CY25), which could reduce the price to a minimum of $4.07 per share ($135m in total). Nano’s CEO, Yoav Stern, will be CEO of the combined entity. DM’s CEO, Ric Fulop, will be invited to join the board and be part of the C-suite.
The combined entity had pro forma revenue of $246m in CY23 (28% recurring). Both companies are currently loss-making at the adjusted EBITDA level (Q124 loss of $13.6m each for Nano and DM) but are in the midst of cost-cutting programmes, which are significantly reducing operating expenses. Nano estimates that in addition to these programmes, cost synergies of c $30m on a run-rate basis are possible, as premises are consolidated, duplicated central costs are removed and sales & marketing and R&D are optimised. Post the acquisition, management estimates Nano will have c $665m in gross cash (this could be higher at the reduced purchase price) assuming it does not repurchase the $115m of convertible debt owed by DM. DM had a net debt position of $77m at the end of Q124 (cash $66m, leases $30m, convertible debt $113m). Based on the consensus revenue forecast of $186m in FY25, the deal values DM at an EV/sales multiple of 1.4x.
Nano and DM have complementary product sets, with DM adding industrial-scale volume applications for metals and polymers to Nano’s additive electronics manufacturing, micro polymer and ceramics applications. The combined entity will have an installed base of at least 8,000 machines, with the potential to cross-sell Nano’s DeepCube AI software to DM’s customer base. The focus will be on developing production-oriented high-margin products with recurring revenue from services and consumables.
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Research: Industrials
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